Town & City Management Ltd - Limited company accounts 16.1

REGISTERED NUMBER: 06858249 (England and Wales)

REPORT OF THE DIRECTORS AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2015

FOR

TOWN & CITY MANAGEMENT LTD

Page

Company Information

1

Report of the Directors

2

Profit and Loss Account

3

Balance Sheet

4

Notes to the Financial Statements

6

DIRECTORS:

P W Bigge

Mrs M L Bigge

Mrs S E Johnson

Mr M Baker

SECRETARY:

Town & City Secretaries Ltd

REGISTERED OFFICE:

2nd Floor North Point

Faverdale North

Darlington

Co. Durham

DL3 0PH

REGISTERED NUMBER:

06858249 (England and Wales)

ACCOUNTANTS:

Stephenson Nuttall & Co

Chartered Accountants

Ossington Chambers

6-8 Castle Gate

Newark

Nottinghamshire

NG24 1AX

The directors present their report with the financial statements of the company for the year ended 31st December 2015.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st January 2015 to the date of this

report.

P W Bigge

Mrs M L Bigge

Mrs S E Johnson

Mr M Baker

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small

companies.

ON BEHALF OF THE BOARD:

P W Bigge - Director

25th April 2016

TURNOVER

874,730

869,788

Cost of sales

5,284

19,798

GROSS PROFIT

869,446

849,990

Administrative expenses

794,455

850,226

OPERATING PROFIT/(LOSS)

2

74,991

(236

)

Income from shares in group undertakings

39,310

40,000

Interest receivable and similar income

17,630

2

56,940

40,002

131,931

39,766

Interest payable and similar charges

12,631

5,366

PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION

119,300

34,400

Tax on profit on ordinary activities

3

21,626

3,414

PROFIT FOR THE FINANCIAL YEAR

97,674

30,986

FIXED ASSETS

Intangible assets

6

333,333

358,333

Tangible assets

7

54,783

66,740

Investments

8

1

1

388,117

425,074

CURRENT ASSETS

Stocks

1,974

3,478

Debtors

9

175,577

175,305

Cash at bank and in hand

510

460

178,061

179,243

CREDITORS

Amounts falling due within one year

10

306,833

331,375

NET CURRENT LIABILITIES

(128,772

)

(152,132

)

TOTAL ASSETS LESS CURRENT LIABILITIES

259,345

272,942

CREDITORS

Amounts falling due after more than one year

11

(42,342

)

(70,085

)

PROVISIONS FOR LIABILITIES

13

(9,755

)

(11,883

)

NET ASSETS

207,248

190,974

CAPITAL AND RESERVES

Called up share capital

14

180,001

180,001

Profit and loss account

15

27,247

10,973

SHAREHOLDERS' FUNDS

207,248

190,974

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st December 2015.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st December 2015 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 in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies and with the Financial Reporting Standard for Smaller Entities (effective January 2015).

The financial statements were approved by the Board of Directors on 25th April 2016 and were signed on its behalf by:

P W Bigge - Director

1.	ACCOUNTING POLICIES

Accounting convention

The financial statements have been prepared under the historical cost convention and in accordance with the

Financial Reporting Standard for Smaller Entities (effective January 2015).

Preparation of consolidated financial statements

The financial statements contain information about Town & City Management Ltd as an individual company and

do not contain consolidated financial information as the parent of a group. The company has taken the option

under Section 398 of the Companies Act 2006 not to prepare consolidated financial statements.

Turnover

Turnover represents net invoiced sales of goods and services, excluding value added tax.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2009, is being amortised evenly over its estimated useful life of twenty years.

The estimated useful life of twenty years is based on the average length of time for which a customer remains

with the company.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Fixtures and fittings

-

25% on cost

Motor vehicles

-

20% on cost

Computer equipment

-

25% on cost

Stocks

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

moving items.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet date.

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 the shorter.

The interest element of these obligations is charged to the profit and loss account over the relevant period. The

capital element of the future payments is treated as a liability.

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 the profit and loss account in the period to which they relate.

Restatement of comparatives

The comparative figures for the year ended 31st December 2014 within the Balance Sheet and related notes have

been restated to reflect the prior year adjustment, as disclosed in note 5 to the accounts.

2.	OPERATING PROFIT/(LOSS)

The operating profit (2014 - operating loss) is stated after charging:

31/12/15

31/12/14

as restated

£

£

Depreciation - owned assets

12,234

10,539

Depreciation - assets on hire purchase contracts

9,720

6,480

Goodwill amortisation

25,000

25,000

Pension costs

10,962

-

Directors' remuneration and other benefits etc

150,325

181,501

3.

TAXATION

Analysis of the tax charge

The tax charge on the profit on ordinary activities for the year was as follows:

31/12/15

31/12/14

as restated

£

£

Current tax:

UK corporation tax

23,754

(8,469

)

Deferred tax

(2,128

)

11,883

Tax on profit on ordinary activities

21,626

3,414

4.

DIVIDENDS

31/12/15

31/12/14

as restated

£

£

Ordinary shares of 1p each

Final

40,000

-

Interim

41,400

-

81,400

-

5.	PRIOR YEAR ADJUSTMENT

The 2014 Balance Sheet has been restated to include a bank loan, taken out by the company in December 2012

but previously believed to be in the name of one of the directors. The effect of this is an increase in the

overdrawn directors loan account, within debtors, of £51,802, an increase in creditors due within one year of

£5,400 and an increase in creditors due after more than one year of £46,402.

6.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1st January 2015

and 31st December 2015

500,000

AMORTISATION

At 1st January 2015

141,667

Charge for year

25,000

At 31st December 2015

166,667

NET BOOK VALUE

At 31st December 2015

333,333

At 31st December 2014

358,333

7.	TANGIBLE FIXED ASSETS

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

COST

At 1st January 2015

5,685

11,864

126,925

144,474

Additions

-

-

9,997

9,997

At 31st December 2015

5,685

11,864

136,922

154,471

DEPRECIATION

At 1st January 2015

5,638

11,864

60,232

77,734

Charge for year

47

-

21,907

21,954

At 31st December 2015

5,685

11,864

82,139

99,688

NET BOOK VALUE

At 31st December 2015

-

-

54,783

54,783

At 31st December 2014

47

-

66,693

66,740

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Computer

equipment

£

COST

At 1st January 2015

and 31st December 2015

38,880

DEPRECIATION

At 1st January 2015

6,480

Charge for year

9,720

At 31st December 2015

16,200

NET BOOK VALUE

At 31st December 2015

22,680

At 31st December 2014

32,400

8.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1st January 2015

and 31st December 2015

1

NET BOOK VALUE

At 31st December 2015

1

At 31st December 2014

1

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Town & City Secretaries Ltd

Nature of business: Placing and administering insurance policies.

%

Class of shares:

holding

Ordinary

100.00

31/12/15

31/12/14

£

£

Aggregate capital and reserves

1

1,573

Profit for the year

37,738

41,571

The company acquired the whole of the issued share capital of Town & City Secretaries Ltd on 1st January 2014.

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/12/15

31/12/14

as restated

£

£

Trade debtors

26,838

17,803

Other debtors

4,354

8,371

Directors' current accounts

106,786

118,768

Tax

26,697

16,742

Prepayments

10,902

13,621

175,577

175,305

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/12/15

31/12/14

as restated

£

£

Bank loans and overdrafts

109,071

119,450

Hire purchase contracts

5,012

5,012

Trade creditors

19,604

28,193

Tax

44,059

17,664

Social security and other taxes

38,804

31,972

Amount due to group undertakings

9,830

3,480

Accrued expenses

80,453

125,604

306,833

331,375

11.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31/12/15

31/12/14

as restated

£

£

Bank loans

6,000

22,700

Bank loans - 2-5 years

20,000

19,000

Bank loans more 5 yr by instal

14,672

21,702

Hire purchase contracts

1,670

6,683

42,342

70,085

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

14,672

21,702

12.	SECURED DEBTS

The following secured debts are included within creditors:

31/12/15

31/12/14

as restated

£

£

Hire purchase contracts

6,682

11,695

13.	PROVISIONS FOR LIABILITIES

31/12/15

31/12/14

as restated

£

£

Deferred tax

9,755

11,883

Deferred

tax

£

Balance at 1st January 2015

11,883

Accelerated capital allowances

(2,128

)

Balance at 31st December 2015

9,755

14.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31/12/15

31/12/14

value:

as restated

£

£

100

Ordinary

1p

1

1

180,000

Preferred

£1

180,000

180,000

180,001

180,001

The preferred shares do not carry any rights to vote at general meetings or to receive any dividends.

15.

RESERVES

Profit

and loss

account

£

At 1st January 2015

10,973

Profit for the year

97,674

Dividends

(81,400

)

At 31st December 2015

27,247

16.	RELATED PARTY DISCLOSURES

On 1st January 2014 the company purchased the whole of the issued share capital of Town & City Secretaries

Ltd from Mr P W Bigge for an amount of £1.

At 31st December 2015 an amount of £9,830 (2014 - £3,480) was owed by the company to Town & City

Secretaries Ltd.

During the year the company charged Mr P W Bigge an amount of £17,365 in respect of interest on his

overdrawn directors loan account.

Mr P W Bigge and Mrs M L Bigge provided personal guarantees on the company's bank loan and bank overdraft

facilities. These guarantees covered the whole of the bank loan and bank overdraft balances as at 31st December

2015.

17.	ULTIMATE CONTROLLING PARTY

Mr P W Bigge together with his wife Mrs M L Bigge own all of the ordinary shares in the company which carry

the rights to vote and to receive dividends.