W P Purves Electrical Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: SC535061 (Scotland)

W P Purves Electrical Limited

Unaudited Financial Statements

for the Year Ended 30th June 2023

Page

Company information

1

Balance sheet

2

to

3

Notes to the financial statements

4

to

8

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

-

-

Tangible assets

5

40,506

36,813

40,506

36,813

Current assets

Stocks

55,266

3,500

Debtors

6

321,162

156,056

Cash at bank

36,978

7,002

413,406

166,558

Creditors

Amounts falling due within one year

7

241,677

92,779

Net current assets

171,729

73,779

Total assets less current liabilities

212,235

110,592

Creditors

Amounts falling due after more than one year

8

(36,699

)

(48,961

)

Provisions for liabilities

(7,696

)

(6,994

)

Net assets

167,840

54,637

Capital and reserves

Called up share capital

1,000

1,000

Retained earnings

166,840

53,637

167,840

54,637

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30th June 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 30th June 2023 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 applicable to companies subject to the small companies regime.

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 and authorised for issue on 16th January 2024 and were signed on its behalf by:

D 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 Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" 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, excluding discounts, rebates, value added tax and other sales taxes.

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, has now been fully amortised evenly over it's 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

Office equipment

-

25% on cost

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

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost includes all direct expenditure and appropriate proportion of fixed and variable overheads. Net realisable value is based on estimated selling prices less further costs expected to be incurred in bringing the stock to completion.

Financial instruments

The following assets and liabilities are classified as financial instruments - trade debtors, trade creditors, accruals, bank overdrafts, bank loans, hire purchase contracts and directors' loans.

Bank loans and 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 minimum period of 12 months and beyond from the date of signing these financial statements and have an expectation that the company should be in a position to continue trading in the current format 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 8 (2022 - 6 ) .

4.	Intangible fixed assets

Goodwill

£

Cost

At 1st July 2022

and 30th June 2023

18,000

Amortisation

At 1st July 2022

and 30th June 2023

18,000

Net book value

At 30th June 2023

-

At 30th June 2022

-

5.	Tangible fixed assets

Fixtures

Plant and

and

Motor

Office

machinery

fittings

vehicles

equipment

Totals

£

£

£

£

£

Cost

At 1st July 2022

4,018

930

55,435

499

60,882

Additions

-

-

12,500

2,200

14,700

At 30th June 2023

4,018

930

67,935

2,699

75,582

Depreciation

At 1st July 2022

2,297

511

20,762

499

24,069

Charge for year

258

64

10,492

193

11,007

At 30th June 2023

2,555

575

31,254

692

35,076

Net book value

At 30th June 2023

1,463

355

36,681

2,007

40,506

At 30th June 2022

1,721

419

34,673

-

36,813

6.

Debtors: amounts falling due within one year

2023

2022

£

£

Trade debtors

137,463

35,456

Amounts recoverable on contract

65,762

45,236

Other debtors

117,937

75,364

321,162

156,056

7.

Creditors: amounts falling due within one year

2023

2022

£

£

Bank loans and overdrafts

10,000

12,613

Hire purchase contracts

12,628

9,648

Trade creditors

95,500

25,520

Taxation and social security

79,787

41,735

Other creditors

43,762

3,263

241,677

92,779

8.

Creditors: amounts falling due after more than one year

2023

2022

£

£

Bank loans

20,000

30,000

Hire purchase contracts

16,699

18,961

36,699

48,961

9.	Secured debts

The following secured debts are included within creditors:

2023

2022

£

£

Hire purchase contracts

29,327

28,609

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

10.	Other financial commitments

At 30th June 2023, the company had total commitments under non-cancellable operating leases over the remaining life of those leases of £21,530 (2022 - £4,338).

11.	Directors' advances, credits and guarantees

The following advances and credits to directors subsisted during the year ended 30th June 2023 and year ended 30th June 2022:

2023

2022

£

£

Director 1

Balance outstanding at start of year

37,376

33,522

Amounts advanced

97,446

83,120

Amounts repaid

(75,854

)

(79,266

)

Balance outstanding at end of year

58,968

37,376

Director 2

Balance outstanding at start of year

37,376

33,522

Amounts advanced

67,807

49,914

Amounts repaid

(46,215

)

(46,060

)

Balance outstanding at end of year

58,968

37,376

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