NGB (Cheltenham) Limited - Period Ending 2018-03-31

Registration number: 05357907

NGB (Cheltenham) Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 March 2018

NGB (Cheltenham) Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Financial Statements	3 to 9

NGB (Cheltenham) Limited

Company Information

Directors

J A Bermingham N A P Bermingham S A J G Bermingham

Company secretary

J A Bermingham

Registered office

Staverton Court Staverton Cheltenham Gloucestershire GL51 0UX

Accountants

Hazlewoods LLP Staverton Court Staverton Cheltenham Gloucestershire GL51 0UX

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NGB (Cheltenham) Limited

(Registration number: 05357907)
Balance Sheet as at 31 March 2018

	Note	2018  £	2017  £
Fixed assets
Intangible assets	4	-	59,583
Tangible assets	5	386,934	483,201
		386,934	542,784
Current assets
Debtors	6	391,449	413,389
Cash at bank and in hand		773,094	170,080
		1,164,543	583,469
Creditors: Amounts falling due within one year	7	(800,578)	(511,531)
Net current assets		363,965	71,938
Total assets less current liabilities		750,899	614,722
Deferred tax liabilities	9	(65,644)	(79,887)
Net assets		685,255	534,835
Capital and reserves
Called up share capital	10	301,000	301,000
Profit and loss account		384,255	233,835
Total equity		685,255	534,835

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 Profit and Loss Account has been taken.

Approved and authorised by the Board on 6 December 2018 and signed on its behalf by:
 

J A Bermingham
Company secretary and director

The notes on pages 3 to 9 form an integral part of these financial statements.
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NGB (Cheltenham) 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 and Wales.

The address of its registered office is:
Staverton Court
Staverton
Cheltenham
Gloucestershire
GL51 0UX

The principal place of business is:
Morringham Yard
104 Prestbury Road
Cheltenham
Gloucestershire
GL52 2DJ

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 for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

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 and after eliminating sales within the company.

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.

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NGB (Cheltenham) Limited

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

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge 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.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

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 as follows:

Asset class	Depreciation method and rate
Leasehold improvements	15% reducing balance
Plant and machinery	15% reducing balance
Fixtures and fittings	15% reducing balance
Motor vehicles	25% reducing balance

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Goodwill	10 years straight line

Trade debtors

Trade debtors are amounts due from customers for goods sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. 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 debtors.

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 all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

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NGB (Cheltenham) Limited

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

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.

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.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

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.

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NGB (Cheltenham) Limited

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

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was as follows:

	2018  No.	2017  No.
Average number of employees	19	18

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NGB (Cheltenham) Limited

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

4

Intangible assets

	Goodwill  £
Cost
At 1 April 2017	650,000
At 31 March 2018	650,000
Amortisation
At 1 April 2017	590,417
Amortisation charge	59,583
At 31 March 2018	650,000
Carrying amount
At 31 March 2018	-
At 31 March 2017	59,583

5

Tangible assets

	Leasehold improvements £	Plant and machinery  £	Fixtures and fittings  £	Motor vehicles  £	Total £
Cost
At 1 April 2017	6,822	724,837	3,271	105,549	840,479
Additions	-	35,120	-	16,713	51,833
Disposals	-	(145,421)	-	-	(145,421)
At 31 March 2018	6,822	614,536	3,271	122,262	746,891
Depreciation
At 1 April 2017	5,258	311,150	2,457	38,413	357,278
Charge for the year	240	61,306	156	20,196	81,898
Eliminated on disposal	-	(79,219)	-	-	(79,219)
At 31 March 2018	5,498	293,237	2,613	58,609	359,957
Carrying amount
At 31 March 2018	1,324	321,299	658	63,653	386,934
At 31 March 2017	1,564	413,687	814	67,136	483,201

6

Debtors

	2018  £	2017  £
Trade debtors	367,690	353,081
Other debtors	917	40,082
Prepayments	22,842	20,226
	391,449	413,389

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NGB (Cheltenham) Limited

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

7

Creditors

	Note	2018  £	2017  £
Due within one year
Loans and borrowings	8	26,897	66,341
Trade creditors		149,745	243,375
Amounts due to related parties	11	278,000	-
Social security and other taxes		68,933	15,313
Outstanding defined contribution pension costs		874	824
Other creditors		320	1,205
Accrued expenses		156,462	156,225
Corporation tax liability		119,347	28,248
		800,578	511,531

8

Loans and borrowings

	Note	2018 £	2017 £
Current loans and borrowings
Finance lease liabilities		-	36,226
Other borrowings	11	26,897	30,115
		26,897	66,341

Finance lease liabilities
The finance lease liabilities of the company are secured against the assets to which they relate.

9

Deferred tax

Deferred tax assets and liabilities

2018	Liability £
Differences between accumulated depreciation and amortisation and capital allowances	65,779
Short term timing differences	(135)
	65,644

2017	Liability £
Differences between accumulated depreciation and amortisation and capital allowances	79,952
Short term timing differences	(65)
	79,887

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NGB (Cheltenham) Limited

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

10

Share capital

Allotted, called up and fully paid shares

	2018		2017
	No.	£	No.	£
Ordinary A shares of £1 each	800	800	800	800
Ordinary B shares of £1 each	100	100	100	100
Ordinary C shares of £1 each	100	100	100	100
Redeemable preference shares of £1 each	300,000	300,000	300,000	300,000
	301,000	301,000	301,000	301,000

Ordinary shares
The different classes of ordinary shares referred to above carry separate rights to dividends but, in all other significant aspects, rank pari passu.

Redeemable preference shares

The redeemable preference shares are redeemable at the option of the company. They are redeemable at £1 per share and carry no voting rights.

11

Related party transactions

Summary of transactions with parent

At the balance sheet date the company owed £278,000 (2017 - £nil) to its parent company. There are no fixed repayment terms and no interest is charged on these amounts.

Other transactions with directors

At the balance sheet date the company owed £26,897 (2017 - £30,115) to the directors of the company. There are no fixed repayment terms and no interest is charged on these amounts.

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