| TIM GROOM ARCHITECTS LTD |
| Notes to the Accounts |
| for the year ended 31 January 2019 |
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| 1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Freehold buildings |
over 50 years |
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Leasehold land and buildings |
over the lease term |
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Plant and machinery |
over 5 years |
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Fixtures, fittings, tools and equipment |
over 5 years |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions are recognised when the Company has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation taking into account the risks and uncertainties surrounding the obligation. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Pensions |
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For a defined benefit scheme, the liability recorded in the balance sheet is the present value of the defined obligation at that date. The defined benefit obligation is calculated on an annual basis by independent actuaries. |
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Actuarial gains and losses are recognised in full in the period in which they occur and are shown in Other Comprehensive Income. Current and past service costs, along with settlements or curtailments, are charged to the Income Statement. Interest on pension plan liabilities are recognised within finance expense. |
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| 2 |
Tangible fixed assets |
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Plant and machinery etc |
| £ |
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Cost |
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At 1 February 2018 |
95,704 |
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Additions |
31,950 |
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At 31 January 2019 |
127,654 |
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Depreciation |
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At 1 February 2018 |
50,617 |
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Charge for the year |
19,140 |
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At 31 January 2019 |
69,757 |
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Net book value |
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At 31 January 2019 |
57,897 |
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At 31 January 2018 |
45,087 |
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| 3 |
Debtors |
2019 |
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2018 |
| £ |
£ |
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Trade debtors |
322,660 |
|
240,800 |
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Directors' loan account |
|
16,426 |
|
181,558 |
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Other debtors |
6,363 |
|
6,363 |
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|
345,449 |
|
428,721 |
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| 4 |
Creditors: amounts falling due within one year |
2019 |
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2018 |
| £ |
£ |
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Trade creditors |
45,834 |
|
16,402 |
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Corporation tax |
231,250 |
|
25,000 |
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Other taxes and social security costs |
107,497 |
|
73,318 |
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Other creditors |
3,104 |
|
- |
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Pension scheme |
14,000 |
|
- |
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401,685 |
|
114,720 |
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Employer pension obligation |
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The Company has agreed to fund a defined benefit pension scheme in respect of key employees. The most recent actuarial valuation of the obligation of £14,000 was on 31 January 2019. During the year the expense incurred was £47,000. |
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The principal assumptions used are: |
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i. Discount rate – 2.6% |
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ii. Inflation RPI – 3.1% |
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iii. Inflation CPI – 2.1% |
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iv. Pre and Post Retirement mortality – S2PMA tables with improvements in the CMI 2017 model and a long term rate of improvement of 1.25% |
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2019 |
| £ |
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Present value of defined benefit obligations |
14,000 |
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Fair value of scheme assets |
- |
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Liability recognised in the balance sheet |
14,000 |
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Movements in the present value of the defined benefit obligations were as follows; |
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2019 |
| £ |
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At the beginning of the year |
- |
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Current service cost |
700,000 |
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Interest cost |
5,000 |
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Acturial (gain) |
(33,000) |
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Settlement |
(658,000) |
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At the end of the year |
14,000 |
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| 5 |
Provisions for liabilities |
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Employees' compension provision |
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Employees' compension provision |
| £ |
£ |
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Opening balance |
700,000 |
|
- |
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Proision created during the year |
- |
|
700,000 |
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Provision released during the year |
(700,000) |
- |
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Closing balance |
- |
|
700,000 |
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The provision represents the director’s best estimate of the present value of the cost to the Company due to the obligation in the financial period. A formal decision regarding the amount and its form will be taken at some point after the reporting period end. |
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| 6 |
Related party transactions |
2019 |
|
2018 |
| £ |
£ |
|
Related party 1: |
|
Mr Timothy Groom |
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Company director and 50% share holder |
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Related party 2: |
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Mrs Victoria Groom |
|
Company director and 50% share holder |
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Amount due from the related parties at the year end |
16,426 |
|
181,558 |
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During the period, the following shareholder/directors agreed to take on the Company’s pension obligations as follows: |
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- Timothy Groom in respect of Victoria Groom for £320,000 |
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- Victoria Groom in respect of Timothy Groom for £338,000 |
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The Company agreed to pay the respective individuals amounts equivalent to the actuarial valuations of the pension obligations at transfer. |
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| 7 |
Controlling party |
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The company is controlled by Mr Timothy Mark Groom and Mrs Victoria Louise Groom by virtue of directorship and 50% share holding each respectively. |
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| 8 |
Other information |
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TIM GROOM ARCHITECTS LTD is a private company limited by shares and incorporated in England. Its registered office is: |
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7 Constance Street |
|
Knott Mill |
|
Manchester |
|
M15 4JQ |
