Denton Brickwork Contractors Limited |
Notes to the Accounts |
for the year ended 30 September 2023 |
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Going concern |
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The directors believe that the company is experiencing good levels of sales growth and profitability, and that it is well placed to manage its business risks successfully. Accordingly they have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis in preparing the financial statements. |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the rendering of services. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Plant and machinery |
reducing balance 25% |
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Motor vehicles |
reducing balance 25% |
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Investment property |
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Investment properties are initially recognised at cost, including transaction costs. Subsequently, investment properties are measured at fair value, with any changes in fair value recognised in profit or loss. Fair value is determined based on market value or other appropriate valuation techniques. Any increase or decrease in the fair value of investment properties is recognised in profit or loss in the period in which they arise. Investment properties are revalued periodically to ensure that their carrying amounts reflect their fair values at the reporting date. The frequency of revaluation depends on the nature of the properties and market conditions. Generally, properties are revalued annually, but more frequent revaluations may be performed if there are significant fluctuations in market values. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only 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 and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (i.e. liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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2 |
Prior year adjustment |
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In accordance with the reporting requirements outlined in FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland, the comparative figures in the accounts have been restated to recognise deferred taxation. This adjustment is made to align with the standards applied to small entities as per section 1A of the standard. As a result of this change, profits available for distribution as at 31st August 2022 have decreased by £4,764. |
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3 |
Employees |
2023 |
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2022 |
Number |
Number |
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Average number of persons employed by the company |
0 |
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2 |
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4 |
Tangible fixed assets |
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Plant and machinery etc |
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Motor vehicles |
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Total |
£ |
£ |
£ |
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Cost |
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At 1 October 2022 |
36,249 |
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94,605 |
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130,854 |
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Additions |
1,134 |
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- |
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1,134 |
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At 30 September 2023 |
37,383 |
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94,605 |
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131,988 |
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Depreciation |
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At 1 October 2022 |
30,793 |
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81,004 |
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111,797 |
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Charge for the year |
1,435 |
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3,401 |
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4,836 |
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At 30 September 2023 |
32,228 |
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84,405 |
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116,633 |
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Net book value |
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At 30 September 2023 |
5,155 |
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10,200 |
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15,355 |
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At 30 September 2022 |
5,456 |
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13,601 |
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19,057 |
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5 |
Investment property |
2023 |
£ |
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Fair value |
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At 1 October 2022 |
931,091 |
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Additions |
- |
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Gain on revaluation to fair value |
79,611 |
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Transfer from revaluation reserve |
(5,000) |
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Disposals |
- |
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At 30 September 2023 |
1,005,702 |
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The fair value of investment properties has been arrived at on the basis of a valuation carried out at the year end by the directors. The valuation was made on an open market basis by reference to market evidence of transaction prices for similar properties. The gain on revaluation of £79,611 (2022: £Nil) which arises in the year is recognised in other operating income. A deferred tax liability has been recognised on the revaluation amount to fair value and is included in the provision for deferred taxation. |
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6 |
Debtors |
2023 |
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2022 |
£ |
£ |
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Trade debtors |
127,392 |
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43,242 |
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Other debtors |
21,383 |
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27,429 |
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148,775 |
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70,671 |
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Amounts due after more than one year included above |
9,331 |
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- |
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7 |
Creditors: amounts falling due within one year |
2023 |
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2022 |
£ |
£ |
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Trade creditors |
198 |
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185 |
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Taxation and social security costs |
23,657 |
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48,285 |
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Other creditors |
44,281 |
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2,914 |
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68,136 |
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51,384 |
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8 |
Share capital |
2023 |
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2022 |
£ |
£ |
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Allotted, called up share capital which has been paid up |
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100 ordinary shares of £1 each |
- |
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100 |
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51 ordinary 'A' class shares of £1 each |
51 |
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- |
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19 ordinary 'B' class shares of £1 each |
19 |
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- |
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5 ordinary 'C' class shares of £1 each |
5 |
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- |
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25 ordinary 'D' class shares of £1 each |
25 |
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- |
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100 |
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100 |
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9 |
Revaluation reserve |
2023 |
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2022 |
£ |
£ |
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At 1 October 2022 |
5,000 |
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5,000 |
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Transfer from revaluation reserve |
(5,000) |
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- |
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At 30 September 2023 |
- |
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5,000 |
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10 |
Loans to directors |
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Description and conditions |
B/fwd |
Paid |
Repaid |
C/fwd |
£ |
£ |
£ |
£ |
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Director |
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Loan 1 |
- |
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50,000 |
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(50,000) |
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- |
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Officer |
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Loan 1 |
- |
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10,000 |
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(10,000) |
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- |
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- |
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60,000 |
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(60,000) |
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- |
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During the year, the company advanced funds totalling £50,000 and £10,000 to a director and an officer of the company respectively, both of which were repaid in full before the balance sheet date. Interest has been charged on the loans at the HM Revenue and Customs authorised rates for beneficial loans. |
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11 |
Controlling party |
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The company is controlled by S Denton who owns 51% of the issued share capital of the company. |
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12 |
Other information |
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Denton Brickwork Contractors Limited is a private company limited by shares and incorporated in England. Its registered office is: |
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30 Appleford Road |
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Sutton Courtenay |
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Abingdon |
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Oxfordshire |
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OX14 4NQ |