Company Registration No. 00451880 (England and Wales)
FOREST GATE CONSTRUCTION CO LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2018
PAGES FOR FILING WITH REGISTRAR
FOREST GATE CONSTRUCTION CO LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
FOREST GATE CONSTRUCTION CO LTD
BALANCE SHEET
AS AT
30 SEPTEMBER 2018
30 September 2018
- 1 -
2018
2017
Notes
£
£
£
£
Fixed assets
Tangible assets
3
341,997
353,585
Investment properties
4
479,180
479,180
821,177
832,765
Current assets
Stocks
884,063
497,106
Debtors
5
1,560,005
1,168,706
Cash at bank and in hand
2,823,455
2,984,382
5,267,523
4,650,194
Creditors: amounts falling due within one year
6
(3,694,582)
(3,149,677)
Net current assets
1,572,941
1,500,517
Total assets less current liabilities
2,394,118
2,333,282
Provisions for liabilities
(6,485)
(4,710)
Net assets
2,387,633
2,328,572
Capital and reserves
Called up share capital
7
46,001
46,000
Revaluation reserve
8
44,149
44,149
Non-distributable profits reserve
9
85,851
85,851
Distributable profit and loss reserves
2,211,632
2,152,572
Total equity
2,387,633
2,328,572
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 6 February 2019
T S Hosking
Director
Company Registration No. 00451880
FOREST GATE CONSTRUCTION CO LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2018
- 2 -
1
Accounting policies
Company information
Forest Gate Construction Co Ltd is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Sidney House, Christy Close, Southfields, Basildon, Essex, SS15 6TN.
1.1
Accounting convention
The revised accounts replace the original accounts. These are now the statutory accounts. They have been prepared as at same date as the original accounts, and not as at the date of revision, and accordingly do not deal with events between those dates. There has been no change to the financial transactions within the revised accounts. The director has decided to submit full accounts to Companies House.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
1.3
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures, fittings & equipment
15% of net book value
Motor vehicles
25% of net book value
The freehold property is being depreciated to its estimated residual value over its deemed useful economic life. The directors believe the residual value to be at least the current carrying value in these accounts and therefore and depreciation would be negligible. The directors review the estimated residual value at the end of each accounting period.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
FOREST GATE CONSTRUCTION CO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2018
1
Accounting policies
(Continued)
- 3 -
1.4
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure
. Subsequently it is measured
at fair value a
t
the reporting end date.
The surplus or deficit on revaluation is recognised in profit or loss.
Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.
1.5
Stocks
Stocks
are stated at the lower of cost and
estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
1.6
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
FOREST GATE CONSTRUCTION CO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2018
1
Accounting policies
(Continued)
- 4 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
The pension costs charged in the financial statements represent the contribution payable by the company during the year.
1.12
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 21 (2017 - 23).
FOREST GATE CONSTRUCTION CO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2018
- 5 -
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 October 2017
246,412
208,206
454,618
Additions
-
26,583
26,583
Disposals
-
(32,913)
(32,913)
At 30 September 2018
246,412
201,876
448,288
Depreciation and impairment
At 1 October 2017
-
101,033
101,033
Depreciation charged in the year
-
25,952
25,952
Eliminated in respect of disposals
-
(20,694)
(20,694)
At 30 September 2018
-
106,291
106,291
Carrying amount
At 30 September 2018
246,412
95,585
341,997
At 30 September 2017
246,412
107,173
353,585
4
Investment property
2018
£
Fair value
At 1 October 2017 and 30 September 2018
479,180
The fair value of the investment property has been arrived at on the basis of a valuation carried out at 30 September 2018 by the director. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
5
Debtors
2018
2017
Amounts falling due within one year:
£
£
Trade debtors
1,509,219
1,127,095
Other debtors
50,786
41,611
1,560,005
1,168,706
FOREST GATE CONSTRUCTION CO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2018
- 6 -
6
Creditors: amounts falling due within one year
2018
2017
£
£
Trade creditors
1,217,977
1,073,089
Corporation tax
281,486
278,048
Other taxation and social security
177,472
195,522
Other creditors
2,017,647
1,603,018
3,694,582
3,149,677
7
Called up share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
46,000 Ordinary shares of of £1 each
46,000
46,000
46,000
46,000
Preference share capital
Issued and fully paid
1 Preference share of of £1 each
1
-
1
-
8
Revaluation reserve
2018
2017
£
£
At the beginning of the year
44,149
-
Revaluation surplus arising in the year
-
44,149
At the end of the year
44,149
44,149
9
Non-distributable profits reserve
2018
2017
£
£
At the beginning of the year
85,851
-
Non distributable profits in the year
-
85,851
At the end of the year
85,851
85,851
FOREST GATE CONSTRUCTION CO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2018
- 7 -
10
Audit report information
As the income statement has been omitted from the filing copy of the financial statements the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Ian Meaburn.
The auditor was Myers Clark.
11
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2018
2017
£
£
Within one year
2,208
2,028
Between two and five years
2,208
4,056
4,416
6,084
12
Events after the reporting date
On the 31 January 2019 the property owned by the company was sold at market value to a connected company, IW Hosking Investments Limited.