Crofthead AD Limited - Period Ending 2017-12-31

REGISTRAR OF COMPANIES

Registration number: SC492232

Crofthead AD Limited

Unaudited Financial Statements

31 December 2017

Crofthead AD Limited

Contents

Accountants' Report	1
Balance Sheet	2
Notes to the Financial Statements	4

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Crofthead AD Limited
for the Year Ended 31 December 2017

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Crofthead AD Limited for the year ended 31 December 2017 as set out on pages 2 to 8 from the company's accounting records and from information and explanations you have given us.

As a member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/membershandbook.

This report is made solely to the Board of Directors of Crofthead AD Limited, as a body, in accordance with the terms of our engagement letter dated 2 December 2014. Our work has been undertaken solely to prepare for your approval the accounts of Crofthead AD Limited and state those matters that we have agreed to state to the Board of Directors of Crofthead AD Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Crofthead AD Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Crofthead AD Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and loss of Crofthead AD Limited. You consider that Crofthead AD Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Crofthead AD Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

Dodd & Co Limited
Chartered Accountants
FIFTEEN Rosehill
Montgomery Way
Rosehill Estate
CARLISLE
CA1 2RW

13 July 2018

Page 1

Crofthead AD Limited

(Registration number: SC492232)
Balance Sheet as at 31 December 2017

	Note	31 December 2017 £	31 December 2016 £
Fixed assets
Tangible assets	4	844,600	887,924
Current assets
Debtors	5	87,491	58,010
Cash and cash equivalents		30,609	114,792
		118,100	172,802
Creditors: Amounts falling due within one year	6	(159,726)	(97,769)
Net current (liabilities)/assets		(41,626)	75,033
Total assets less current liabilities		802,974	962,957
Creditors: Amounts falling due after more than one year	6	(1,163,310)	(1,260,082)
Net liabilities		(360,336)	(297,125)
Capital and reserves
Allotted, called up and fully paid share capital		1,000	1,000
Profit and loss account		(361,336)	(298,125)
Total equity		(360,336)	(297,125)

The notes on pages 4 to 8 form an integral part of these financial statements.

Page 2

Crofthead AD Limited

(Registration number: SC492232)
Balance Sheet as at 31 December 2017 (continued)

For the financial year ending 31 December 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 prepared and 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 Board on 13 July 2018 and signed on its behalf by:
 

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

C Riel

Director

The notes on pages 4 to 8 form an integral part of these financial statements.

Page 3

Crofthead AD Limited

Notes to the Financial Statements for the Year Ended 31 December 2017

1	General information

The company is a private company limited by share capital, incorporated in Scotland.

The principal place of business is:
Crofthead
Crocketford
DUMFRIES
DG2 8QW

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 company has net liabilities at 31 December 2017 and meets its day to day working capital requirements through shareholder loans. On the basis of this support, the directors consider it appropriate to prepare the financial statements on the going concern basis.

However, should the company not have the support of its shareholders, and therefore be unable to continue trading, adjustments would have to be made to reduce the value of assets to their recoverable amounts, to provide for any further liabilities which might arise, and to reclassify fixed assets and long term liabilities as current assets and current liabilities.

Disclosure of long or short period

The reasoning behind the shortened prior period is due to the internal reporting requirements of a shareholder of the company.

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.

Page 4

Crofthead AD Limited

Notes to the Financial Statements for the Year Ended 31 December 2017 (continued)

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

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
Plant and machinery	5% straight line basis

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 the sale of goods 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. Trade creditors 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 where due after more than one year.

Page 5

Crofthead AD Limited

Notes to the Financial Statements for the Year Ended 31 December 2017 (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.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 3 (2016 - 3).

Page 6

Crofthead AD Limited

Notes to the Financial Statements for the Year Ended 31 December 2017 (continued)

4	Tangible assets

	Plant and machinery  £	Total £
Cost or valuation
At 1 January 2017	944,460	944,460
Additions	4,051	4,051
At 31 December 2017	948,511	948,511
Depreciation
At 1 January 2017	56,536	56,536
Charge for the year	47,375	47,375
At 31 December 2017	103,911	103,911
Carrying amount
At 31 December 2017	844,600	844,600
At 31 December 2016	887,924	887,924

5

Debtors

	31 December 2017 £	31 December 2016 £
Trade debtors	37,047	17,400
Other debtors	50,444	40,610
	87,491	58,010

6

Creditors

	Note	31 December 2017 £	31 December 2016 £
Due within one year
Trade creditors		152,476	87,720
Taxation and social security		3,037	-
Other creditors		4,213	10,049
		159,726	97,769
Due after one year
Loans and borrowings	7	1,163,310	1,260,082

Page 7

Crofthead AD Limited

Notes to the Financial Statements for the Year Ended 31 December 2017 (continued)

7	Loans and borrowings

	31 December 2017 £	31 December 2016 £
Non-current loans and borrowings
Other borrowings	1,163,310	1,260,082

Page 8