Company registration number 01027093 (England and Wales)
SWEETING BROTHERS (LAND DRAINAGE) LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
PAGES FOR FILING WITH REGISTRAR
SWEETING BROTHERS (LAND DRAINAGE) LIMITED
CONTENTS
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 7
SWEETING BROTHERS (LAND DRAINAGE) LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2022
30 September 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
4
1,839,868
1,660,822
Investments
5
615,507
601,754
2,455,375
2,262,576
Current assets
Stocks
121,522
89,378
Debtors
6
594,196
692,289
Cash at bank and in hand
334
334
716,052
782,001
Creditors: amounts falling due within one year
7
(1,218,037)
(1,459,493)
Net current liabilities
(501,985)
(677,492)
Total assets less current liabilities
1,953,390
1,585,084
Creditors: amounts falling due after more than one year
8
(187,209)
(107,899)
Provisions for liabilities
(394,126)
(337,498)
Net assets
1,372,055
1,139,687
Capital and reserves
Called up share capital
300
300
Profit and loss reserves
1,371,755
1,139,387
Total equity
1,372,055
1,139,687
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 30 September 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
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.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
SWEETING BROTHERS (LAND DRAINAGE) LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 SEPTEMBER 2022
30 September 2022
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 14 June 2023 and are signed on its behalf by:
L Sweeting
D L Sweeting
Director
Director
Company Registration No. 01027093
SWEETING BROTHERS (LAND DRAINAGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 3 -
1
Accounting policies
Company information
Sweeting Brothers (Land Drainage) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 20-24 Park Street, Selby, North Yorkshire, YO8 4PW.
1.1
Accounting convention
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.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of subsidiary investments at fair value. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT. The fair value of consideration takes into account trade discounts and settlement discounts.
Revenue from contracts for the provision of land drainage services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
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:
Freehold property
2% reducing balance
Plant and machinery
5% reducing balance
Fixtures and fittings
33% reducing balance
Motor vehicles
20% reducing balance
Freehold land is not depreciated.
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.
1.4
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
SWEETING BROTHERS (LAND DRAINAGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 4 -
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.6
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.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
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 statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 only 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 the initial recognition of assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
SWEETING BROTHERS (LAND DRAINAGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 5 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Amounts owed by customers on long-term contracts
The company undertakes work on long-term contracts which are at various degrees of completion at a year end. Management carries out an assessment of the stage of completeness of each of these contracts as at each balance sheet date to estimate the representative turnover and profit to recognise. Valuations are based on the overall value of each contract, knowledge of the work being undertaken on each contract up to the year end, activity on each contract since the year and management's previous experience on similar contracts including those that have been completed. The profitability of each contract is sensitive to cost variances arising either as a result of unforeseen issues on the contract or from changes to market rates.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
22
22
4
Tangible fixed assets
Freehold property
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 October 2021
248,743
2,603,962
27,840
272,004
3,152,549
Additions
340,883
981
69,655
411,519
Disposals
(167,111)
(13,500)
(180,611)
At 30 September 2022
248,743
2,777,734
28,821
328,159
3,383,457
Depreciation
At 1 October 2021
29,768
1,292,691
23,767
145,501
1,491,727
Depreciation charged in the year
2,137
142,119
1,403
34,622
180,281
Eliminated in respect of disposals
(117,774)
(10,645)
(128,419)
At 30 September 2022
31,905
1,317,036
25,170
169,478
1,543,589
Carrying amount
At 30 September 2022
216,838
1,460,698
3,651
158,681
1,839,868
At 30 September 2021
218,975
1,311,271
4,073
126,503
1,660,822
SWEETING BROTHERS (LAND DRAINAGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 6 -
5
Fixed asset investments
2022
2021
£
£
Shares in group undertakings and participating interests
615,507
601,754
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 October 2021 & 30 September 2022
729,818
Impairment
At 1 October 2021
128,064
Impairment loss reversals
(13,753)
At 30 September 2022
114,311
Carrying amount
At 30 September 2022
615,507
At 30 September 2021
601,754
6
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
549,124
618,360
Other debtors
45,072
73,929
594,196
692,289
7
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans and overdrafts
122,774
271,893
Trade creditors
304,358
345,823
Amounts owed to group undertakings
295,862
298,925
Taxation and social security
46,143
76,970
Other creditors
448,900
465,882
1,218,037
1,459,493
SWEETING BROTHERS (LAND DRAINAGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 7 -
8
Creditors: amounts falling due after more than one year
2022
2021
£
£
Other creditors
187,209
107,899
Amounts due under hire purchase agreements, included in other creditors, are secured on the assets to which they relate.
The bank loan and overdraft is secured by a fixed and floating charge over the company's and its subsidiary's assets.
9
Capital commitments
Amounts contracted for but not provided in the financial statements:
2022
2021
£
£
Acquisition of tangible fixed assets
-
49,240
10
Related party transactions
Other information
A debenture was executed on 23 June 2016 in favour of the company's bankers comprising a fixed and floating charge and a guarantee was executed at the same date covering financial indebtedness between the company's bankers, the company and the company's subsidiary, Fen Ditching Limited.
The company acts as guarantor in respect of the subsidiary company's lease on its business premises.