G K Worden & Son Limited Company accounts

G K Worden & Son Limited Company accounts

GK WORDEN & SON LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 06004633
G K Worden & Son Limited
Unaudited Financial Statements
31 December 2017
G K Worden & Son Limited
Financial Statements
Year ended 31 December 2017
Contents
Page
Strategic report
1
Directors' report
2
Statement of income and retained earnings
3
Statement of financial position
4
Notes to the financial statements
6
G K Worden & Son Limited
Strategic Report
Year ended 31 December 2017
Principal activity The principal activity of the company in the year under review continued to be that of new build property. Fair review of the business The trading profit for the year, after taxation, was £22,870. Retained profits amount to £386,474 and the Directors consider the state of the affairs of the Company to be satisfactory in light of the challenges it has met in the economic climate particularly affecting the housebuilding sector of the Construction Industry. The turnover has decreased from £4.65 million in the year ended 31st December, 2016 to £4.39 million in the year ended 31st December, 2017, whilst the gross profit percentage has decreased from 12% to 11.5% due to increased pressure on margins. Current assets exceeded current liabilities by £330,608 at 31st December 2017, showing that there were no liquidity issues, and the distributable reserves of the company were £386,474 at the year end. Principal risks and uncertainties The principal business risk facing the company is changes to the economic climate, which could affect the construction business sector. The experience of the directors ensures that should economic conditions deteriorate then steps would be taken to minimise the effect of such new conditions on the company.
This report was approved by the board of directors on 11 September 2018 and signed on behalf of the board by:
Mr G Worden
Director
Registered office:
52 Fore Street
Callington
Cornwall
PL17 7AJ
G K Worden & Son Limited
Directors' Report
Year ended 31 December 2017
The directors present their report and the unaudited financial statements of the company for the year ended 31 December 2017 .
Directors
The directors who served the company during the year were as follows:
Mr G Worden
Mrs S Worden
Mr T Worden
Dividends
During the year, total dividends of £97,500 (2016 £77,500) were paid to the Directors
This report was approved by the board of directors on 11 September 2018 and signed on behalf of the board by:
Mr G Worden
Director
Registered office:
52 Fore Street
Callington
Cornwall
PL17 7AJ
G K Worden & Son Limited
Statement of Income and Retained Earnings
Year ended 31 December 2017
2017
2016
Note
£
£
Turnover
4
4,392,035
4,652,327
Cost of sales
3,885,840
4,094,030
------------
------------
Gross profit
506,195
558,297
Administrative expenses
478,835
459,831
---------
---------
Operating profit
5
27,360
98,466
---------
---------
Profit before taxation
27,360
98,466
Tax on profit
8
4,490
20,164
--------
--------
(Loss)/profit for the financial year and total comprehensive income
22,870
78,302
--------
--------
Retained earnings at the start of the year
461,104
460,302
---------
---------
Retained earnings at the end of the year
386,474
461,104
---------
---------
All the activities of the company are from continuing operations.
G K Worden & Son Limited
Statement of Financial Position
31 December 2017
2017
2016
Note
£
£
Fixed assets
Tangible assets
9
69,338
80,209
Current assets
Debtors
10
113,893
330,767
Cash at bank and in hand
409,794
232,679
---------
---------
523,687
563,446
Creditors: amounts falling due within one year
11
193,079
152,620
---------
---------
Net current assets
330,608
410,826
---------
---------
Total assets less current liabilities
399,946
491,035
Creditors: amounts falling due after more than one year
12
6,215
20,428
Provisions
14
7,158
9,404
---------
---------
Net assets
386,573
461,203
---------
---------
Capital and reserves
Called up share capital
16
99
99
Profit and loss account
386,474
461,104
---------
---------
Shareholders funds
386,573
461,203
---------
---------
For the year ending 31 December 2017 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 financial statements for the year in question in accordance with section 476 ;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
G K Worden & Son Limited
Statement of Financial Position (continued)
31 December 2017
These financial statements were approved by the board of directors and authorised for issue on 11 September 2018 , and are signed on behalf of the board by:
Mr G Worden
Director
Company registration number: 06004633
G K Worden & Son Limited
Notes to the Financial Statements
Year ended 31 December 2017
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 52 Fore Street, Callington, Cornwall, PL17 7AJ.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised 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 that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
4. Turnover
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Operating profit
Operating profit or loss is stated after charging:
2017
2016
£
£
Depreciation of tangible assets
16,741
19,458
--------
--------
6. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2017
2016
No.
No.
Production staff
11
11
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2017
2016
£
£
Wages and salaries
245,181
235,107
Social security costs
6,683
6,556
---------
---------
251,864
241,663
---------
---------
7. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2017
2016
£
£
Remuneration
79,599
77,604
--------
--------
8. Tax on profit
Major components of tax expense
2017
2016
£
£
Current tax:
UK current tax expense
4,490
20,164
-------
--------
Tax on profit
4,490
20,164
-------
--------
9. Tangible assets
Plant and machinery
£
Cost
At 1 January 2017
235,930
Additions
5,870
---------
At 31 December 2017
241,800
---------
Depreciation
At 1 January 2017
155,721
Charge for the year
16,741
---------
At 31 December 2017
172,462
---------
Carrying amount
At 31 December 2017
69,338
---------
At 31 December 2016
80,209
---------
10. Debtors
2017
2016
£
£
Trade debtors
113,893
330,767
---------
---------
11. Creditors: amounts falling due within one year
2017
2016
£
£
Trade creditors
170,723
106,829
Corporation tax
6,736
28,967
Obligations under finance leases and hire purchase contracts
14,212
15,953
Other Creditors
1,408
871
---------
---------
193,079
152,620
---------
---------
12. Creditors: amounts falling due after more than one year
2017
2016
£
£
Obligations under finance leases and hire purchase contracts
6,215
20,428
-------
--------
13. Finance leases and hire purchase contracts
Assets obtained under hire purchase contacts or finance leases are capitalised in the Balance Sheet. Those held under hire purchase contacts 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.
14. Provisions
Deferred tax (note 15)
£
At 1 January 2017
9,404
Charge against provision
( 2,246)
-------
At 31 December 2017
7,158
-------
15. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2017
2016
£
£
Included in provisions (note 14)
7,158
9,404
-------
-------
16. Called up share capital
Issued, called up and fully paid
2017
2016
No.
£
No.
£
Ordinary shares of £ 1 each
99
99
99
99
----
----
----
----