Grangewood Fencing Supplies Limited - Limited company accounts 18.2

GRANGEWOOD FENCING SUPPLIES LIMITED

REPORT OF THE DIRECTORS AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 FEBRUARY 2018

Page

Company Information

1

Report of the Directors

2

Chartered Accountants' Report

3

Statement of Income and Retained Earnings

4

Balance Sheet

5

Notes to the Financial Statements

7

DIRECTORS:

D S Baskerville

Mrs N A Baskerville

D J Perry

SECRETARY:

Mrs N A Baskerville

REGISTERED OFFICE:

Oakhurst House

57 Ashbourne Road

Derby

Derbyshire

DE22 3FS

REGISTERED NUMBER:

04609510 (England and Wales)

ACCOUNTANTS:

Sibbalds Limited

Chartered Accountants and Business Advisers

Oakhurst House

57 Ashbourne Road

Derby

Derbyshire

DE22 3FS

The directors present their report with the financial statements of the company for the year ended 28 February 2018.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 March 2017 to the date of this

report.

D S Baskerville

Mrs N A Baskerville

D J Perry

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to

small companies.

ON BEHALF OF THE BOARD:

D S Baskerville - Director

21 November 2018

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the

financial statements of Grangewood Fencing Supplies Limited for the year ended 28 February 2018 which comprise

the Statement of Income and Retained Earnings, Balance Sheet and the related notes from the company's accounting

records and from information and explanations you have given us.

As a practising 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 within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of Grangewood Fencing Supplies Limited, as a body, in accordance with the terms of our engagement letter dated 26 November 2014. Our work has been undertaken solely to prepare for your approval the financial statements of Grangewood Fencing Supplies Limited and state those matters that we have agreed to state to the Board of Directors of Grangewood Fencing Supplies Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Grangewood Fencing Supplies Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Grangewood Fencing Supplies Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Grangewood Fencing Supplies Limited. You consider that Grangewood Fencing Supplies 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 financial statements of Grangewood Fencing Supplies 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 financial statements.

Sibbalds Limited

Chartered Accountants and Business Advisers

Oakhurst House

57 Ashbourne Road

Derby

Derbyshire

DE22 3FS

22 November 2018

TURNOVER

9,468,132

8,006,304

Cost of sales

7,276,752

5,675,766

GROSS PROFIT

2,191,380

2,330,538

Distribution costs

1,129,297

1,149,916

Administrative expenses

574,330

551,728

1,703,627

1,701,644

487,753

628,894

Other operating income

34,583

24,029

OPERATING PROFIT

4

522,336

652,923

Income from shares in group undertakings

20,000

369,000

Interest receivable and similar income

4,368

7,195

24,368

376,195

546,704

1,029,118

Gain/loss on revaluation of investment property

164,634

-

711,338

1,029,118

Interest payable and similar expenses

39,188

24,216

PROFIT BEFORE TAXATION

672,150

1,004,902

Tax on profit

5

96,520

131,471

PROFIT FOR THE FINANCIAL YEAR

575,630

873,431

Retained earnings at beginning of year

1,848,917

1,248,118

Dividends

(238,770

)

(272,632

)

RETAINED EARNINGS AT END OF YEAR

2,185,777

1,848,917

FIXED ASSETS

Intangible assets

6

-

-

Tangible assets

7

1,610,207

1,554,867

Investments

8

1,260,619

351,000

2,870,826

1,905,867

CURRENT ASSETS

Stocks

650,000

562,000

Debtors

9

2,313,000

1,200,267

Cash at bank and in hand

49,858

274,626

3,012,858

2,036,893

CREDITORS

Amounts falling due within one year

10

1,795,959

1,399,510

NET CURRENT ASSETS

1,216,899

637,383

TOTAL ASSETS LESS CURRENT LIABILITIES

4,087,725

2,543,250

CREDITORS

Amounts falling due after more than one year

11

(1,806,848

)

(609,033

)

PROVISIONS FOR LIABILITIES

15

(95,000

)

(85,200

)

NET ASSETS

2,185,877

1,849,017

CAPITAL AND RESERVES

Called up share capital

16

100

100

Retained earnings

2,185,777

1,848,917

SHAREHOLDERS' FUNDS

2,185,877

1,849,017

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 28 February 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 28 February 2018 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 in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

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

D S Baskerville - Director

1.	STATUTORY INFORMATION

Grangewood Fencing Supplies 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.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "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 as modified by the revaluation of certain assets.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts,

rebates, value added tax and other sales taxes.

Goodwill

Acquired goodwill is written off, in equal instalments, over its estimated useful life of 10 years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost

less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

2% on cost

Plant and machinery

-

15% on reducing balance

Computer equipment

-

33% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less impairment.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and

slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to

the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

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

balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different

from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and

laws that have been enacted or substantively enacted by the year end and that are expected to apply to the

reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that

they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those

held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance

leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital

element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

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 liabilities

Short term creditors are measured at transaction price. Other financial liabilities, including loans from group

companies are measured initially at fair value, net of transaction cost and are measured subsequently at

amortised cost using the effective interest method, less any impairment.

Financial assets

Short term debtors are measured at transaction price, less any impairment. Other financial assets, including

loans to group companies are measured initially at fair value, net of transactions cost and are subsequently

measured at amortised cost using the effective interest method, less any impairment.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 45 (2017 - 44 ) .

4.	OPERATING PROFIT

The operating profit is stated after charging:

2018

2017

£

£

Depreciation - owned assets

70,494

76,367

Goodwill amortisation

-

1,250

5.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2018

2017

£

£

Current tax:

UK corporation tax

86,720

105,071

Deferred tax

9,800

26,400

Tax on profit

96,520

131,471

6.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 March 2017

and 28 February 2018

240,000

AMORTISATION

At 1 March 2017

and 28 February 2018

240,000

NET BOOK VALUE

At 28 February 2018

-

At 28 February 2017

-

7.	TANGIBLE FIXED ASSETS

Freehold

Plant and

Motor

Computer

property

machinery

vehicles

equipment

Totals

£

£

£

£

£

COST OR VALUATION

At 1 March 2017

1,171,333

360,377

240,654

71,229

1,843,593

Additions

-

1,314

14,797

292

16,403

Disposals

(49,634

)

-

(4,000

)

-

(53,634

)

Revaluations

164,634

-

-

-

164,634

At 28 February 2018

1,286,333

361,691

251,451

71,521

1,970,996

DEPRECIATION

At 1 March 2017

42,478

100,820

78,270

67,158

288,726

Charge for year

11,177

39,085

26,577

3,026

79,865

Eliminated on disposal

(6,475

)

-

(1,327

)

-

(7,802

)

At 28 February 2018

47,180

139,905

103,520

70,184

360,789

NET BOOK VALUE

At 28 February 2018

1,239,153

221,786

147,931

1,337

1,610,207

At 28 February 2017

1,128,855

259,557

162,384

4,071

1,554,867

Cost or valuation at 28 February 2018 is represented by:

Freehold

Plant and

Motor

Computer

property

machinery

vehicles

equipment

Totals

£

£

£

£

£

Valuation in 2018

164,634

-

-

-

164,634

Cost

1,121,699

361,691

251,451

71,521

1,806,362

1,286,333

361,691

251,451

71,521

1,970,996

Surplus freehold land was valued on an open market basis on 28 February 2018 by the directors .

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

Motor

machinery

vehicles

Totals

£

£

£

COST OR VALUATION

At 1 March 2017

90,313

26,990

117,303

Transfer to ownership

(15,864

)

(26,990

)

(42,854

)

At 28 February 2018

74,449

-

74,449

DEPRECIATION

At 1 March 2017

19,434

13,077

32,511

Charge for year

9,371

-

9,371

Transfer to ownership

(7,461

)

(13,077

)

(20,538

)

At 28 February 2018

21,344

-

21,344

NET BOOK VALUE

At 28 February 2018

53,105

-

53,105

At 28 February 2017

70,879

13,913

84,792

8.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 March 2017

351,000

Additions

909,619

At 28 February 2018

1,260,619

NET BOOK VALUE

At 28 February 2018

1,260,619

At 28 February 2017

351,000

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade debtors

819,290

648,080

Amounts owed by group undertakings

1,091,324

93,785

Other debtors

402,386

458,402

2,313,000

1,200,267

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Bank loans and overdrafts (see note 12)

222,113

64,282

Hire purchase contracts (see note 13)

19,588

19,795

Trade creditors

1,376,899

1,100,640

Amounts owed to group undertakings

-

9,689

Taxation and social security

156,420

179,306

Other creditors

20,939

25,798

1,795,959

1,399,510

11.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2018

2017

£

£

Bank loans (see note 12)

1,772,216

554,813

Hire purchase contracts (see note 13)

9,632

29,220

Other creditors

25,000

25,000

1,806,848

609,033

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

1,254,656

332,479

12.

LOANS

An analysis of the maturity of loans is given below:

2018

2017

£

£

Amounts falling due within one year or on demand:

Bank loans

222,113

64,282

Amounts falling due between one and two years:

Bank loans - 1-2 years

229,215

64,282

Amounts falling due between two and five years:

Bank loans - 2-5 years

288,345

158,052

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

1,254,656

332,479

13.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2018

2017

£

£

Net obligations repayable:

Within one year

19,588

19,795

Between one and five years

9,632

29,220

29,220

49,015

Non-cancellable operating

leases

2018

2017

£

£

Within one year

37,620

57,000

Between one and five years

45,000

75,000

In more than five years

200,000

206,928

282,620

338,928

14.	SECURED DEBTS

The following secured debts are included within creditors:

2018

2017

£

£

Bank loans

1,994,329

619,095

Hire purchase contracts

29,220

49,015

2,023,549

668,110

Bank borrowings are secured by a personal guarantee made by D S Baskerville of £30,000, a debenture against

the stock and assets of the company and a legal charge against the land and buildings at Bonehill Road,

Tamworth.

Liabilities under hire purchase agreements are secured on the assets concerned.

15.	PROVISIONS FOR LIABILITIES

2018

2017

£

£

Deferred tax

95,000

85,200