R. E. Pearce Properties Limited - Period Ending 2019-03-31

R. E. Pearce Properties Limited - Period Ending 2019-03-31


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Company registration number: 01841780

R. E. Pearce Properties Limited

Filleted Annual Report and Unaudited Financial Statements

for the Year Ended 31 March 2019

 

R. E. Pearce Properties Limited

Contents

Balance Sheet

1 to 2

Notes to the Financial Statements

3 to 9

 

R. E. Pearce Properties Limited

(Registration number: 01841780)
Balance Sheet as at 31 March 2019

Note

2019
 £

2018
 £

Fixed assets

 

Tangible assets

4

600,428

592,260

Current assets

 

Stocks

5

2,703,541

2,100,362

Debtors

6

55,292

34,984

Cash at bank and in hand

 

39,370

-

 

2,798,203

2,135,346

Creditors: Amounts falling due within one year

7

(2,078,007)

(1,600,833)

Net current assets

 

720,196

534,513

Total assets less current liabilities

 

1,320,624

1,126,773

Creditors: Amounts falling due after more than one year

7

(22,648)

(8,917)

Provisions for liabilities

 

Deferred tax liabilities

 

(73,682)

(72,036)

Net assets

 

1,224,294

1,045,820

Capital and reserves

 

Called up share capital

106

106

Revaluation reserve

260,439

262,494

Profit and loss reserve

963,749

783,220

Total equity

 

1,224,294

1,045,820

 

R. E. Pearce Properties Limited

(Registration number: 01841780)
Balance Sheet as at 31 March 2019

For the financial year ending 31 March 2019 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 and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006. The option not to file the profit and loss account and directors’ report has been taken.

Approved and authorised by the Board on 16 December 2019 and signed on its behalf by:
 


R E Pearce
Director


L M Pearce
Company secretary and director

 
 

R. E. Pearce Properties Limited

Notes to the Financial Statements
for the Year Ended 31 March 2019

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:
Unit B2
South Western Business Park
Sherborne
Dorset
DT9 3PS
England

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

This is the first set of financial statements that 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.

These financial statements are presented in Sterling (£).

Turnover 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.

Turnover is recognised on the sales completion date for housing developments and as the contract activity progresses for contracted work.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current 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.

 

R. E. Pearce Properties Limited

Notes to the Financial Statements
for the Year Ended 31 March 2019

Deferred tax is recognised on timing 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 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.

Deferred tax liabilities are presented within provisions for liabilities on the balance sheet.

Tangible assets

Tangible assets are stated at cost, less accumulated depreciation and accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation of tangible assets

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

Land buildings

1% straight line

Plant and machinery

Over 3 to 5 years straight line

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.

Debtors

Trade debtors are amounts due from customers for housing developments and contracting 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.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

R. E. Pearce Properties Limited

Notes to the Financial Statements
for the Year Ended 31 March 2019

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.

Assets held under hire purchase agreements are capitalised as tangible fixed assets with the future obligation being recognised as a liability. Finance costs are recognised in the Profit and Loss Account calculated at a constant periodic rate of interest over the term of the liability.

Reserves

Called up share capital represents the nominal value of shares that have been issued.

Profit and loss account includes all current and prior period profits and losses.

The fair value reserve is the surplus or deficit arising on the fair value of an asset of a company.

Leases

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.

Dividends

Dividend distributions to the company’s shareholders are recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

R. E. Pearce Properties Limited

Notes to the Financial Statements
for the Year Ended 31 March 2019

Defined contribution pension obligation

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations.

The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year was 14 (2018 - 14).

4

Tangible assets

Land and buildings
£

Plant and machinery
 £

Total
£

Cost or valuation

At 1 April 2018

390,000

537,450

927,450

Additions

-

83,325

83,325

Disposals

-

(77,164)

(77,164)

At 31 March 2019

390,000

543,611

933,611

Depreciation

At 1 April 2018

-

335,190

335,190

Charge for the year

3,900

30,769

34,669

Eliminated on disposal

-

(36,676)

(36,676)

At 31 March 2019

3,900

329,283

333,183

Carrying amount

At 31 March 2019

386,100

214,328

600,428

At 31 March 2018

390,000

202,260

592,260

Included within the net book value of land and buildings above is £386,100 (2018 - £390,000) in respect of freehold land and buildings.
 

Revaluation

The fair value of the company's freehold land and buildings was revalued on 31 March 2019. An independent valuer was not involved.
The valuation was determined by the directors at open market value.
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £92,516 (2018 - £93,698).

 

R. E. Pearce Properties Limited

Notes to the Financial Statements
for the Year Ended 31 March 2019

5

Stocks

2019
£

2018
£

Work in progress

2,703,541

2,100,362

6

Debtors

2019
 £

2018
 £

Trade debtors

-

-

Other debtors

55,292

34,984

Total current trade and other debtors

55,292

34,984

7

Creditors

Creditors: amounts falling due within one year

Note

2019
£

2018
£

Due within one year

 

Loans and borrowings

8

539,373

74,105

Trade creditors

 

68,074

71,588

Taxation and social security

 

17,873

15,962

Corporation tax

 

53,732

34,504

Other creditors

 

1,398,955

1,404,674

 

2,078,007

1,600,833

Due after one year

 

Loans and borrowings

8

22,648

8,917

 

R. E. Pearce Properties Limited

Notes to the Financial Statements
for the Year Ended 31 March 2019

8

Loans and borrowings

2019
£

2018
£

Current loans and borrowings

Bank borrowings

509,053

-

Bank overdrafts

-

20,218

Obligations under finance leases and hire purchase contracts

30,320

53,887

539,373

74,105

2019
£

2018
£

Non-current loans and borrowings

Obligations under finance leases and hire purchase contracts

22,648

8,917

Bank borrowings

The bank loans and bank overdraft are secured by way of a fixed charge over the company's assets and guarantees provided by the directors.

Other borrowings

Obligations under finance leases and hire purchase contracts are secured against plant and machinery with a net book value of £140,158 (2018: £139,399).

9

Reserves reconciliation

Revaluation reserve
£

At 1 April 2018

262,494

Movement in year :

Deferred tax on property, plant and equipment revaluation

663

Transfer of depreciation on revaluation

(2,718)

Total comprehensive income

(2,055)

At 31 March 2019

260,439

 

R. E. Pearce Properties Limited

Notes to the Financial Statements
for the Year Ended 31 March 2019

Revaluation reserve
£

At 1 April 2017

162,408

Movement in year :

Property, plant and equipment revaluation

103,259

Deferred tax on property, plant and equipment revaluation

(544)

Transfer of depreciation on revaluation

(2,629)

Total comprehensive income

100,086

At 31 March 2018

262,494