Company Registration No. 01558160 (England and Wales)
DURHAM ASSOCIATES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2018
PAGES FOR FILING WITH REGISTRAR
DURHAM ASSOCIATES LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 10
DURHAM ASSOCIATES LIMITED
BALANCE SHEET
AS AT 30 APRIL 2018
30 April 2018
- 1 -
2018
2017
Notes
£
£
£
£
Fixed assets
Tangible assets
5
1,400
3,650
Investments
6
-
76,000
1,400
79,650
Current assets
Stocks
500
500
Debtors
7
106,100
120,525
Cash at bank and in hand
25,586
39,893
132,186
160,918
Creditors: amounts falling due within one year
8
(146,857)
(227,968)
Net current liabilities
(14,671)
(67,050)
Total assets less current liabilities
(13,271)
12,600
Capital and reserves
Called up share capital
9
2
2
Profit and loss reserves
(13,273)
12,598
Total equity
(13,271)
12,600
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 30 April 2018 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.
T
he 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.
The financial statements were approved by the board of directors and authorised for issue on 16 January 2019 and are signed on its behalf by:
Mr M Sands
Director
Company Registration No. 01558160
DURHAM ASSOCIATES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2018
- 2 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2016
2
45,393
45,395
Year ended 30 April 2017:
Loss and total comprehensive income for the year
-
(24,295)
(24,295)
Dividends
-
(8,500)
(8,500)
Balance at 30 April 2017
2
12,598
12,600
Year ended 30 April 2018:
Loss and total comprehensive income for the year
-
(25,871)
(25,871)
Balance at 30 April 2018
2
(13,273)
(13,271)
DURHAM ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2018
- 3 -
1
Accounting policies
Company information
Durham Associates Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
The Old Brewery, Castle Eden, County Durham, TS27 4SU.
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.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
At the balance sheet date the company had net current liabilities of £14,671 (2017 - £67,050. The company is heavily reliant on the financial support of its parent and other group companies, owing them £118,378 at the balance sheet date. Durham Associates Group Limited and fellow group companies have committed to provide ongoing support to the company for the foreseeable future and will not seek payment of the outstanding liabilities until such a time that it is considered financially viable.
1.3
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 and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional 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
recover
ed
.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably.
DURHAM ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2018
1
Accounting policies
(Continued)
- 4 -
Amortisation is recognised so as to write off the cost
o
f assets less their residual values over their useful lives on the following bases:
Patents
over useful life of 10 years
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Computer equipment
2 to 3 years straight line
Fixtures, fittings and equipment
2 to 4 years straight line
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
.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities 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.
1.7
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.8
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.
1.9
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.
DURHAM ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2018
1
Accounting policies
(Continued)
- 5 -
1.10
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.
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.
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
and
loans from
fellow group companies 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.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.11
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.
1.12
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 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.
DURHAM ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2018
1
Accounting policies
(Continued)
- 6 -
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.
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 profit and loss account, 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.
1.13
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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.
2
Exceptional costs
2018
2017
£
£
Redundancy costs
31,810
-
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was 7 (2017 - 10).
DURHAM ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2018
- 7 -
4
Intangible fixed assets
Goodwill
Patents
Total
£
£
£
Cost
At 1 May 2017 and 30 April 2018
10,000
7,500
17,500
Amortisation and impairment
At 1 May 2017 and 30 April 2018
10,000
7,500
17,500
Carrying amount
At 30 April 2018
-
-
-
At 30 April 2017
-
-
-
5
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 May 2017
10,923
Disposals
(1,650)
At 30 April 2018
9,273
Depreciation and impairment
At 1 May 2017
7,273
Depreciation charged in the year
2,250
Eliminated in respect of disposals
(1,650)
At 30 April 2018
7,873
Carrying amount
At 30 April 2018
1,400
At 30 April 2017
3,650
6
Fixed asset investments
2018
2017
£
£
Investments
-
76,000
The company held 76,000 £1 B ordinary shares in the parent company until they were redeemed on 31 July 2017. These shares had no voting rights at general meetings but entitled the company to a 3% cumulative dividend per annum. The company had priority of payment over other shareholders for the full amount subscribed for each share together with all dividend arrears.
DURHAM ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2018
6
Fixed asset investments
(Continued)
- 8 -
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 May 2017
76,000
Disposals
(76,000)
At 30 April 2018
-
Carrying amount
At 30 April 2018
-
At 30 April 2017
76,000
7
Debtors
2018
2017
Amounts falling due within one year:
£
£
Trade debtors
99,695
100,376
Corporation tax recoverable
2,005
2,005
Amounts owed by group undertakings and undertakings in which the company has a participating interest
1,109
5,692
Other debtors
3,291
12,452
106,100
120,525
8
Creditors: amounts falling due within one year
2018
2017
£
£
Trade creditors
7,111
7,067
Amounts owed to group undertakings
119,486
159,713
Corporation tax
13
13
Other taxation and social security
11,454
17,376
Other creditors
8,793
43,799
146,857
227,968
DURHAM ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2018
- 9 -
9
Called up share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
2 ordinary shares of £1 each
2
2
2
2
10
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Income
Expenses
2018
2017
2018
2017
£
£
£
£
Related parties
30,676
55,802
59,167
58,131
The following amounts were outstanding at the reporting end date:
2018
2017
Amounts owed to related parties
£
£
Related parties
119,486
159,713
The following amounts were outstanding at the reporting end date:
2018
2017
Amounts owed by related parties
£
£
Related parties
1,109
5,692
DURHAM ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2018
- 10 -
11
Directors' transactions
The following advances were provided to directors during the year:
Description
% Rate
Opening balance
Interest charged
Amounts repaid
Closing balance
£
£
£
£
Loan
3.00
1,650
36
(1,016)
670
Loan
3.00
40
-
-
40
1,690
36
(1,016)
710
Interest is charged on outstanding balances at a rate equivalent to the HM Revenue and Customs rates of interest.
12
Parent company
The immediate and ultimate parent company is Durham Associates Group Limited and it's registered office is The Old Brewery, Castle Eden, County Durham TS27 4SU.
2018-04-30
2017-05-01
false
CCH Software
CCH Accounts Production 2018.310
No description of principal activity
21 January 2019
Mr M Sands
Mr D Picken
Mr T W Sterling
Mr J D Steer
Mr M Sands
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