Complete Background Screening Ltd - Period Ending 2018-05-31

Registration number: 05435348

Complete Background Screening Ltd

Filleted Annual Report and Unaudited Financial Statements

for the Year Ended 31 May 2018

HSJ Accountants Ltd
Severn House
Hazell Drive
Newport
South Wales
NP10 8FY

Complete Background Screening Ltd

Contents

Company Information	1
Accountants' Report	2
Balance Sheet	3 to 4
Statement of Changes in Equity	5
Notes to the Financial Statements	6 to 12

Complete Background Screening Ltd

Company Information

Directors

Mrs R Bedgood Mr GC Jones

Registered office

CBS House 40 - 42 Robert Street Pontypridd Rhondda Cynon Taff CF37 3DY

Accountants

HSJ Accountants Ltd Severn House Hazell Drive Newport South Wales NP10 8FY

Page 1

Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Complete Background Screening Ltd
for the Year Ended 31 May 2018

As described on the balance sheet you are responsible for the compilation of the accounts for the year ended 31 May 2018, as set out on pages 3 to 12, and you consider that the company is exempt from an audit. In accordance with your instructions we have compiled the unaudited accounts from the accounting records and from information and explanations supplied to us.

HSJ Accountants Ltd
Severn House
Hazell Drive
Newport
South Wales
NP10 8FY

30 October 2018

Page 2

Complete Background Screening Ltd

(Registration number: 05435348)
Balance Sheet as at 31 May 2018

	Note	2018 £	2017 £
Fixed assets
Tangible assets	4	701,656	91,128
Investments	5	20,000	20,000
		721,656	111,128
Current assets
Debtors	6	477,107	441,666
Cash at bank and in hand		192,216	341,285
		669,323	782,951
Creditors: Amounts falling due within one year	7	(675,531)	(746,007)
Net current (liabilities)/assets		(6,208)	36,944
Total assets less current liabilities		715,448	148,072
Creditors: Amounts falling due after more than one year	7	(378,865)	-
Provisions for liabilities		(5,781)	(7,748)
Net assets		330,802	140,324
Capital and reserves
Called up share capital	9	100	100
Profit and loss account		330,702	140,224
Total equity		330,802	140,324

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

Page 3

Complete Background Screening Ltd

(Registration number: 05435348)
Balance Sheet as at 31 May 2018

For the financial year ending 31 May 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 Profit and Loss Account has been taken.

Approved and authorised by the Board on 30 October 2018 and signed on its behalf by:

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

Mrs R Bedgood

Director

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

Page 4

Complete Background Screening Ltd

Statement of Changes in Equity for the Year Ended 31 May 2018

	Share capital £	Profit and loss account £	Total £
At 1 June 2017	100	140,224	140,324
Profit for the year	-	381,438	381,438
Total comprehensive income	-	381,438	381,438
Dividends	-	(190,960)	(190,960)
At 31 May 2018	100	330,702	330,802

	Share capital £	Profit and loss account £	Total £
At 1 June 2016	100	268,956	269,056
Loss for the year	-	(11,116)	(11,116)
Total comprehensive income	-	(11,116)	(11,116)
Dividends	-	(117,616)	(117,616)
At 31 May 2017	100	140,224	140,324

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

Page 5

Complete Background Screening Ltd

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

1	General information

The company registration number is: 05435348

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

The address of its registered office is:
CBS House
40 - 42 Robert Street
Pontypridd
Rhondda Cynon Taff
CF37 3DY

These financial statements were authorised for issue by the Board on 30 October 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.

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
Freehold land & Buildings	2% straight line
Leasehold land & buildings	10% straight line
Plant & machinery	20% straight line
Fixtures & fittings	20% straight line

Page 6

Complete Background Screening Ltd

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

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Investments

Investments held as fixed assets are stated at cost, together with subsequent capital contributions, less any provisions for impairment in value.

Investment income is recognised in the financial statements when the company becomes entitled to its share of profits from the fixed assets investment.

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.

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.

Page 7

Complete Background Screening Ltd

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

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Recognition and measurement
A financial asset held as an equity instrument is recognised initially at the transaction price (including transaction costs).

At the end of each reporting period, unlisted equity investments are recorded at fair value, where appropriate, or at cost less impairment if their fair value cannot be reliably measured. Objective evidence of the impairment of financial assets is assessed at each period end and any impairment loss recognised in the profit or loss immediately. Impairment loss is calculated as the difference between the carrying amount of the instrument and the best estimate of the cash flows expected to be derived from the asset (including sales proceeds if sold) at the balance sheet date.

Investment income is recognised in the financial statements when the company becomes entitled to its share of profits from the financial instrument.
 
 

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 16 (2017 - 15).

Page 8

Complete Background Screening Ltd

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

4	Tangible assets

	Freehold land & buildings £	Leasehold land & buildings £	Fixtures & fittings £	Plant & machinery £	Total £
Cost or valuation
At 1 June 2017	-	51,047	48,973	31,949	131,969
Additions	624,754	457	-	8,372	633,583
At 31 May 2018	624,754	51,504	48,973	40,321	765,552
Depreciation
At 1 June 2017	-	924	26,964	12,949	40,837
Charge for the year	3,996	5,150	6,330	7,583	23,059
At 31 May 2018	3,996	6,074	33,294	20,532	63,896
Carrying amount
At 31 May 2018	620,758	45,430	15,679	19,789	701,656
At 31 May 2017	-	50,123	22,007	18,998	91,128

5	Equity instruments

	2018 £	2017 £
Unlisted investments	20,000	20,000

Unlisted investments	£
Cost or valuation
At 1 June 2017	20,000
At 31 May 2018	20,000
Carrying amount
At 31 May 2018	20,000
At 31 May 2017	20,000

Page 9

Complete Background Screening Ltd

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

6

Debtors

	Note	2018 £	2017 £
Trade debtors		459,721	388,808
Amounts owed by group undertakings and undertakings in which the company has a participating interest	12	9,838	7,154
Other debtors		7,548	45,704
		477,107	441,666

7

Creditors

	Note	2018 £	2017 £
Due within one year
Bank loans and overdrafts	8	14,697	1,852
Trade creditors		441,990	588,855
Taxation and social security		48,265	28,685
Other creditors		170,579	126,615
		675,531	746,007
Due after one year
Loans and borrowings	8	378,865	-

Included in the loans and borrowings are the following amounts due after more than five years:

	2018 £	2017 £
After more than five years by instalments	341,434	-

8	Loans and borrowings

	2018 £	2017 £
Non-current loans and borrowings
Bank borrowings	378,865	-

	2018 £	2017 £
Current loans and borrowings
Bank borrowings	9,358	-
Other borrowings	5,339	1,852
	14,697	1,852

Page 10

Complete Background Screening Ltd

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

Other borrowings

Mortgage with a carrying amount of £388,223 (2017 - £Nil).

The bank loan is secured are secured against the relevant asset via a fixed and floating charge.

9	Share capital

Allotted, called up and fully paid shares

	2018		2017
	No.	£	No.	£
Ordinary shares of £1 each	100	100	100	100

10

Dividends

Final dividends paid

	2018 £	2017 £
Final dividend of £1,910 (2017 - £1,176) per each Ordinary share	190,960	117,616

11	Financial commitments, guarantees and contingencies

The total amount of financial commitments not included in the balance sheet is £10,923 (2017 - £17,137). This represents the total future minimum lease payments under operating leases.

The total amount of contingencies not included in the balance sheet is £121,639 (2017 - £121,639). The company is a member of L.R. R&D LLP and is liable to contribute to the assets of the LLP in the event of a winding-up before 1st June 2020. The company does not believe that a winding-up of the LLP is probable and has not made provision for the liability at 31 May 2018.

12	Related party transactions

Key management personnel

Relationship: Directors

Summary of transactions with key management

During the year the company paid dividends totalling £190,960 (2017- £117,616 ), remuneration totalling £15,708 (2017- £9,741) and pension contributions totalling £50,000 (2017 - £156,826) . Also during the year the directors made unsecured, interest free, repayable on demand loans to the company. At the balance sheet date the amount owed to the directors was £5,339 (2017- £1,852).
 

Page 11

Complete Background Screening Ltd

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

Summary of transactions with other related parties

Relationship: Common Shareholder
 During the year Complete Background Screening Ltd carried out transactions with Bull MX Limited, a company in which the director, Mr G Jones, is a shareholder. At the year end the balance due from Bull MX Limited was £9,838 (2017: £7,154).
 

Page 12