W P Purves Electrical Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: SC535061 (Scotland)

W P Purves Electrical Limited

Financial Statements

for the Year Ended 30th June 2018

Page

Company information

1

Balance sheet

2

to

3

Notes to the financial statements

4

to

7

Directors:

D Purves

Mrs A Purves

Registered office:

Academy House

Shedden Park Road

Kelso

Roxburghshire

TD5 7AL

Business address:

Unit 4 Coldstream Workshops

Home Place

Coldstream

Berwickshire

TD12 4DT

Registered number:

SC535061 (Scotland)

Accountants:

Rennie Welch LLP

Academy House

Shedden Park Road

Kelso

Roxburghshire

TD5 7AL

Fixed assets

Intangible assets

4

10,800

14,400

Tangible assets

5

21,019

20,181

31,819

34,581

Current assets

Stocks

2,950

2,950

Debtors

6

93,586

77,358

Cash at bank

-

1,388

96,536

81,696

Creditors

Amounts falling due within one year

7

62,623

49,172

Net current assets

33,913

32,524

Total assets less current liabilities

65,732

67,105

Creditors

Amounts falling due after more than one year

8

(5,988

)

(7,851

)

Provisions for liabilities

(3,643

)

(3,586

)

Net assets

56,101

55,668

Capital and reserves

Called up share capital

1,000

1,000

Retained earnings

55,101

54,668

56,101

55,668

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30th June 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 30th June 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 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 income and retained earnings has not been delivered.

The financial statements were approved by the Board of Directors on 13th March 2019 and were signed on its behalf by:

D Purves - Director

Mrs A Purves - Director

1.	Statutory information

W P Purves Electrical Limited is a private company, limited by shares , registered in Scotland. 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

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.

Turnover

Turnover is measured at the fair value of the consideration received or receivable and represents

amounts receivable for goods supplied and services rendered, stated net of discounts and of Value

Added Tax.

Income is recognised when goods have been delivered to customers such that risks and rewards of

ownership have transferred to them.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2016, is being amortised evenly over its estimated useful life of five 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 the cost less estimated residual value of each asset over its estimated useful life.

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment

losses.

Stocks

Stock is valued at the lower of cost and estimated selling price less costs to sell. In respect of work in

progress and finished goods, cost includes a relevant proportion of overheads according to the stage

of completion.

Financial instruments

The following assets and liabilities are classified as financial instruments - trade debtors, trade

creditors, accruals, bank overdrafts, hire purchase contracts and directors' loans.

Hire purchase contracts are initially measured at the present value of future payments, discounted at a

market rate of interest, and subsequently at amortised cost using the effective interest method.

Directors' loans (being repayable on demand), trade debtors, trade creditors, accruals and bank

overdrafts are measured at the undiscounted amount of the cash or other consideration expected to

be paid or received.

Financial assets that are measured at amortised cost are assessed at the end of each reporting period

for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss

is recognised in the statement of income and retained earnings.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the statement of income

and retained earnings 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 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.

Long term contracts

Amounts recoverable on long term contracts, which are included in debtors are stated at the net sales

value of the work done after provisions for contingencies and anticipated future losses on contracts,

less amounts received as progress payments on account. Excess progress payments are included in

creditors as payments received on account.

Provisions

Provisions are set up only where it is probable that a present obligation exists as a result of an event

prior to the balance sheet date and that a payment will be required in settlement that can be estimated

reliably. Where material, provisions are calculated on a discounted basis.

Employee benefits

Short term employee benefits, including holiday pay, are recognised as an expense in the statement of

income and retained earnings in the period in which they are incurred.

Going concern

The directors have considered the company's financial position for a period of 12 months from the date

of signing these financial statements and have reasonable expectation that the company has adequate

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

adopt the going concern basis in preparing these financial statements.

3.	Employees and directors

The average number of employees during the year was 6 (2017 - 6 ) .

4.	Intangible fixed assets

Goodwill

£

Cost

At 1st July 2017

and 30th June 2018

18,000

Amortisation

At 1st July 2017

3,600

Amortisation for year

3,600

At 30th June 2018

7,200

Net book value

At 30th June 2018

10,800

At 30th June 2017

14,400

5.	Tangible fixed assets

Fixtures

Plant and

and

Motor

machinery

fittings

vehicles

Totals

£

£

£

£

Cost

At 1st July 2017

3,660

447

20,339

24,446

Additions

-

-

6,600

6,600

At 30th June 2018

3,660

447

26,939

31,046

Depreciation

At 1st July 2017

196

67

4,002

4,265

Charge for year

521

57

5,184

5,762

At 30th June 2018

717

124

9,186

10,027

Net book value

At 30th June 2018

2,943

323

17,753

21,019

At 30th June 2017

3,464

380

16,337

20,181

6.

Debtors: amounts falling due within one year

2018

2017

£

£

Trade debtors

36,482

29,047

Amounts recoverable on contract

14,678

13,366

Other debtors

42,426

34,945

93,586

77,358

7.

Creditors: amounts falling due within one year

2018

2017

£

£

Bank loans and overdrafts

6,659

-

Hire purchase contracts

6,511

4,439

Trade creditors

7,483

13,479

Taxation and social security

38,763

28,254

Other creditors

3,207

3,000

62,623

49,172

8.

Creditors: amounts falling due after more than one year

2018

2017

£

£

Hire purchase contracts

5,988

7,851

9.	Secured debts

The following secured debts are included within creditors:

2018

2017

£

£

Hire purchase contracts

12,499

12,290

Hire purchase contracts are secured against the assets to which they relate.

10.	Other financial commitments

At 30th June 2018, the company had total commitments under non-cancellable operating leases over

the remaining life of those leases of £5,812 (2017 - £9,914).

11.	Directors' advances, credits and guarantees

The following advances and credits to directors subsisted during the year ended 30th June 2018 and

period ended 30th June 2017:

2018

2017

£

£

Director 1

Balance outstanding at start of year

17,261

-

Amounts advanced

43,638

90,361

Amounts repaid

(41,060

)

(73,100

)

Balance outstanding at end of year

19,839

17,261

Director 2

Balance outstanding at start of year

17,261

-

Amounts advanced

43,638

54,532

Amounts repaid

(41,060

)

(37,271

)

Balance outstanding at end of year

19,839

17,261

These loans are unsecured and repayable on demand. Interest is charged by the company at the

official rate published by HMRC.