RHOS Construction Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 03178444 (England and Wales)

Unaudited Financial Statements

for the Year Ended 31 December 2017

for

RHOS CONSTRUCTION LIMITED

Page

Company Information

1

Balance Sheet

2

to

3

Notes to the Financial Statements

4

to

8

DIRECTORS:

A C Allum

V I Chenoweth

B G Chenoweth

SECRETARY:

V I Chenoweth

REGISTERED OFFICE:

Unit 1

Chenoweth Business Park

Ruan High Lanes

Truro

Cornwall

TR2 5JT

REGISTERED NUMBER:

03178444 (England and Wales)

ACCOUNTANTS:

Kelsall Steele Ltd

Chartered Accountants

Woodlands Court

Truro Business Park

Truro

Cornwall

TR4 9NH

FIXED ASSETS

Tangible assets

4

132,167

98,483

CURRENT ASSETS

Debtors

5

1,324,471

856,884

Cash at bank

236,125

346,812

1,560,596

1,203,696

CREDITORS

Amounts falling due within one year

6

(618,895

)

(510,298

)

NET CURRENT ASSETS

941,701

693,398

TOTAL ASSETS LESS CURRENT LIABILITIES

1,073,868

791,881

CREDITORS

Amounts falling due after more than one year

7

(29,550

)

(18,998

)

PROVISIONS FOR LIABILITIES

9

(22,468

)

(17,726

)

NET ASSETS

1,021,850

755,157

CAPITAL AND RESERVES

Called up share capital

1,000

1,000

Retained earnings

1,020,850

754,157

SHAREHOLDERS' FUNDS

1,021,850

755,157

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2017.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2017 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors on 21 August 2018 and were signed on its behalf by:

B G Chenoweth - Director

1.	STATUTORY INFORMATION

RHOS Construction Limited is a private company, limited by shares , registered in England and Wales.

The company's registered number and registered office address can be found on the Company

Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The 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. The financial statements have been prepared under the historical cost

convention.

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

Monetary amounts in these financial statements are rounded to the nearest pound sterling.

The director, after making enquiries and having considered the company's business, its financial plans

and the facilities available to finance the business, has a reasonable expectation that the company has

adequate resources to continue in operational existence for the foreseeable future. Accordingly, the

going concern basis is adopted in preparing the financial statements.

Turnover

Turnover (revenue) represents the total invoice value, excluding value added tax, of sales made during

the year.

Revenue in respect of construction contracts includes the initial amount agreed in the contract, plus

any variations in contract work, claims and incentive payments, to the extent that it is probable that

they will result in revenue and can be measured reliably.

If the outcome of a construction contract can be estimated reliably, then contract revenue is

recognised in profit or loss in proportion to the stage of completion of the contract. The stage of

completion is assessed with reference to surveys of work performed. Otherwise, contract revenue is

recognised only to the extent of contract costs incurred that are likely to be recoverable.

Contract expenses are recognised as incurred unless they create an asset related to future contract

activity (see below). An expected loss on a contract is recognised immediately in profit or loss.

Construction contracts in progress represents the gross amount expected to be collected from

customers for contract work performed to date. It is measured at costs incurred plus profits recognised

to date less progress billings and recognised losses.

In the balance sheet, construction contracts in progress for which costs incurred plus recognised

profits exceed progress billings and recognised losses are presented as trade debtors. Contracts for

which progress billings and recognised losses exceed costs incurred plus recognised profits are

presented as deferred income/turnover. Advances received from customers are presented as deferred

income/turnover. Retentions represent amounts payable by customers on expiry of the related

warranty period.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Plant and machinery

-

15% on reducing balance

Motor vehicles

-

15% on reducing balance

Impairment of fixed assets

At each reporting end date, the company reviews the carrying amounts of its tangible assets to

determine whether there is any indication that those assets have suffered an impairment loss. If any

such indication exists, the recoverable amount of the asset is estimated in order to determine the

extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of

an individual asset, the company estimates the recoverable amount of the cash-generating unit to

which the asset belongs.

The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing

value in use, the estimated future cash flows are discounted to their present value using a pre-tax

discount rate that reflects current market assessments of the time value of money and the risks

specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying

amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable

amount. An impairment loss is recognised immediately in profit or loss.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have

ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset

(or cash generating unit) is increased to the revised estimate of its recoverable amount, but so that the

increased carrying amount does not exceed the carrying amount that would have been determined had

no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of

an impairment loss is recognised immediately in profit or loss.

Taxation

The tax expense represents the sum of the current tax expense and deferred tax expense. Current tax

assets are recognised when tax paid exceeds the tax payable.

Current and deferred tax is charged or credited to the profit or loss, except when it relates to items

charged or credited to other comprehensive income or equity, when the tax follows the transaction or

event it relates to and is also charged or credited to other comprehensive income, or equity.

Current tax assets and current tax liabilities and deferred tax assets and deferred tax liabilities are

offset, if and only if, there is a legally enforceable right to set off the amounts and the entity intends

either to settle on the net basis or to realise the asset and settle the liability simultaneously.

Current tax is based on taxable profit for the year. Taxable profit differs from total comprehensive

income because it excludes items of income or expense that are taxable or deductible in other periods.

Current tax assets and liabilities are measured using tax rates that have been enacted or substantively

enacted by the reporting period.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at

the balance sheet date where transactions or events have occurred at that date that will result in an

obligation to pay more, or a right to pay less or to receive more, tax.

Deferred tax assets are recognised only to the extent that the directors consider that it is more likely

than not that there will be suitable taxable profits from which the future reversal of the underlying timing

differences can be deducted.

Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the

periods in which timing differences reverse, based on tax rates and laws enacted or substantively

enacted at the balance sheet date.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the

company's pension scheme are charged to profit or loss in the period to which they relate.

Financial instruments

The company has elected to apply the provisions of Section 11 "Basic Financial Instruments" and

Section 12 "Other Financial Instruments" of FRS102 to all of its financial instruments.

Financial assets and liabilities are recognised in the company's statement of financial position when

the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are classified into specified categories. The classification depends on

the nature and purpose of the financial asset or liability and is determined at the time of recognition.

Basic financial assets, which include trade and other receivables, including staff loans and cash and

bank balances, are initially measured at transaction price including transaction costs and are

subsequently carried at amortised cost using the effective interest method, unless the arrangement

constitutes a financing transaction, where the transaction is measured at the present value of the

future receipts discounted at a market rate of interest.

Basic financial liabilities, which include trade and other payables are initially measured at transaction

price, unless the arrangement constitutes a financing transaction, where the debt instrument is

measured at the present value of the future payments discounted at a market rate of interest.

Financial liabilities are derecognised when, and only when, the company's obligations are discharged,

cancelled, or they expire.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 25 (2016 - 20 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

Motor

machinery

vehicles

Totals

£

£

£

COST

At 1 January 2017

42,685

191,075

233,760

Additions

8,739

41,506

50,245

At 31 December 2017

51,424

232,581

284,005

DEPRECIATION

At 1 January 2017

27,096

108,181

135,277

Charge for year

3,027

13,534

16,561

At 31 December 2017

30,123

121,715

151,838

NET BOOK VALUE

At 31 December 2017

21,301

110,866

132,167

At 31 December 2016

15,589

82,894

98,483

Included within the above are assets held under finance leases or hire purchase contracts as follows:

2017

2016

Net Book Value

Net Book Value

£

£

Motor Vehicles

94,954

72,290

5.

DEBTORS

2017

2016

£

£

Amounts falling due within one year:

Trade debtors

664,785

437,564

Amounts recoverable on contract

194,000

62,000

Other debtors

370,131

317,367

1,228,916

816,931

Amounts falling due after more than one year:

Trade debtors

86,955

26,553

Other debtors

8,600

13,400

95,555

39,953

Aggregate amounts

1,324,471

856,884

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Hire purchase contracts

18,955

17,692

Trade creditors

362,230

177,404

Taxation and social security

84,856

124,965

Other creditors

152,854

190,237

618,895

510,298

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2017

2016

£

£

Hire purchase contracts

29,550

18,998

8.	SECURED DEBTS

The following secured debts are included within creditors:

2017

2016

£

£

Hire purchase contracts

48,505

36,690

9.	PROVISIONS FOR LIABILITIES

2017

2016

£

£

Deferred tax

22,468

17,726

Deferred

tax

£

Balance at 1 January 2017

17,726

Movement in the year

4,742

Balance at 31 December 2017

22,468

10.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 December 2017

and 31 December 2016:

2017

2016

£

£

A C Allum

Balance outstanding at start of year

18,200

23,000

Amounts repaid

(4,800

)

(4,800

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

13,400

18,200

No interest has been charged on the advance. The balance outstanding at the balance sheet date is

shown within other debtors. Of this amount £8,600 is due after more than one year.

11.	RELATED PARTY DISCLOSURES

Included within Debtors is £250,000 (2016: £240,000) owed by Chenoweths Business Park Limited, a

company owned by the directors B G and V I Chenoweth.

Included within Creditors (Due within one year) is £17,221 (2016: £57,221) owed to Rhosnoweth

Limited, a company owned by the directors B G and V I Chenoweth. Additionally, included within

Debtors: Amounts falling due within one year is £62,000 (2016: £62,000) in relation to amounts

recoverable on contract relating to work carried out by Rhos Construction Limited on the land owned

by Rhosnoweth Developments Limited

In addition to note 12, at the balance sheet date, the company owed the directors, B G and V I

Chenoweth, £78,824 (2016: £80,824) as disclosed in Creditors (Due within one year). The balance is

payable on demand and is not subject to interest.

12.	ULTIMATE CONTROLLING PARTY

B G and V I Chenoweth are the ultimate controlling party by virtue of their 100% shareholding.