Company Registration No. 03938463 (England and Wales)
DENVAL CO LIMITED
DIRECTORS' REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
DENVAL CO LIMITED
COMPANY INFORMATION
Directors
Mr A J Morris
Mrs JL Morris
Mr L T Millinship
Mr T M Partridge
Company number
03938463
Registered office
Guardian House
Capital Business Park
CARDIFF
South Glamorgan
UK
CF3 2PZ
Accountants
Broomfield & Alexander Limited
Ty Derw
Lime Tree Court
Cardiff Gate Business Park
CARDIFF
UK
CF23 8AB
DENVAL CO LIMITED
CONTENTS
Page
Directors' report
1
Accountants' report
2
Profit and loss account
3
Balance sheet
4 - 5
Notes to the financial statements
6 - 11
DENVAL CO LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2015
- 1 -
The directors present their report and financial statements for the year ended 31 December 2015.
Purchase of own shares
During the year ordinary shares of £1 each were redeemed at a premium of £1,132.34. Total consideration of £17,000 was paid to the shareholder. The transaction accounted for 15% of the ordinary shares.
Directors
The following directors have held office since 1 January 2015:
Mr A J Morris
Mrs JL Morris
Mr L T Millinship
Mr T M Partridge
Mr D G Owen
(Resigned 14 January 2015)
Review of the business
The company made a substantial loss during the year in relation to one particular project. The company have since worked hard to ensure that the lessons that can be learnt from this contract have been. This in itself has helped to improve the senior management team and refocused them.
Had this project broken even the directors would have been pleased to announce profits during the year in excess of last years reported figures. The project was completed during the year and hence the directors expect that 2016 will once again turn an increased result from the 2014 financial statements.
With a strong management team in place and good supplier relationships, the Company views the future with optimism. The construction industry continues to experience its difficulties, but our strength in the market augurs well for our future success. The company has already secured most of its order book for 2016 and has also started to secured work into 2017.
This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.
On behalf of the board
Mr A J Morris
Director
13 September 2016
DENVAL CO LIMITED
CHARTERED ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF DENVAL CO LIMITED FOR THE YEAR ENDED 31 DECEMBER 2015
- 2 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Denval Co Limited for the year ended 31 December 2015 set out on pages 3 to 11 from the company's accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales, we are subject to its ethical and other professional requirements which are detailed at icaew.com/regulations.
This report is made solely to the Board of Directors of Denval Co Limited, as a body, in accordance with the terms of our engagement letter dated 8 February 2016. Our work has been undertaken solely to prepare for your approval the financial statements of Denval Co Limited and state those matters that we have agreed to state to the Board of Directors of Denval Co Limited, as a body, in this report in accordance with AAF 2/10 as detailed at icaew.com/compilation. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Denval Co Limited and its Board of Directors as a body, for our work or for this report.
It is your duty to ensure that Denval Co Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Denval Co Limited. You consider that Denval Co Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of Denval Co Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Broomfield & Alexander Limited
12 September 2016
Chartered Accountants
Ty Derw
Lime Tree Court
Cardiff Gate Business Park
CARDIFF
UK
CF23 8AB
DENVAL CO LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2015
- 3 -
2015
2014
Notes
£
£
Turnover
6,603,654
5,359,511
Cost of sales
(5,730,093)
(4,161,930)
Gross profit
873,561
1,197,581
Administrative expenses
(1,068,744)
(1,113,154)
Other operating income
-
3,431
Operating (loss)/profit
2
(195,183)
87,858
Interest payable and similar charges
(17,492)
(7,611)
(Loss)/profit on ordinary activities before taxation
(212,675)
80,247
Tax on (loss)/profit on ordinary activities
3
18,154
(30,648)
(Loss)/profit for the year
11
(194,521)
49,599
DENVAL CO LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2015
31 December 2015
- 4 -
2015
2014
Notes
£
£
£
£
Fixed assets
Intangible assets
4
229,467
270,193
Tangible assets
5
67,997
50,872
297,464
321,065
Current assets
Stocks
387,000
352,000
Debtors
6
1,727,699
2,229,842
Cash at bank and in hand
22,757
145,609
2,137,456
2,727,451
Creditors: amounts falling due within one year
7
(2,361,023)
(2,688,654)
Net current liabilities/(assets)
(223,567)
38,797
Total assets less current liabilities
73,897
359,862
Creditors: amounts falling due after more than one year
8
(216,854)
(294,842)
Provisions for liabilities
9
(12,227)
(8,683)
(155,184)
56,337
Capital and reserves
Called up share capital
10
85
100
Share premium account
11
-
4,305
Profit and loss account
11
(155,269)
51,932
Shareholders' funds
(155,184)
56,337
DENVAL CO LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2015
31 December 2015
- 5 -
For the financial year ended 31 December 2015 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 and the Financial Reporting Standard for Smaller Entities (effective January 2015).
Approved by the Board for issue on 12 September 2016
Mr A J Morris
Director
Company Registration No. 03938463
DENVAL CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
- 6 -
1
Accounting policies
1.1
Accounting convention
The financial statements are prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015).
Despite the company having net current liabilities, the financial statements have been prepared on a going concern basis. This presumes that the company will continue to operate for the foreseeable future. The directors are of the opinion that it is appropriate to prepare the financial statements under the going concern assumption as the company will continue to benefit from the support of its directors and its parent company, Brunel Plant Services Limited.
1.2
Compliance with accounting standards
The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied consistently (except as otherwise stated).
1.3
Turnover
Turnover represents amounts derived from the provision of goods and services which fall within the company's ordinary activities after deduction of trade discounts and Value Added Tax. The turnover and pre-tax profit, which arises in the United Kingdom, is attributable to the Company's principal activity. Profit is recognised on long-term contracts, if the final outcome can be assessed with reasonable certainty, by including in the profit and loss account turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs to date bear to total expected costs for that contract.
The turnover and pre-tax profit, which arises in the United Kingdom, is attributable to the Company's principal activity.
Profit is recognised on long-term contracts, if the final outcome can be assessed with reasonable certainty, by including in the profit and loss account turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs to date bear to total expected costs for that contract.
1.4
Goodwill
Acquired goodwill is written off in equal annual instalments over its estimated useful economic life.
1.5
Tangible fixed assets and depreciation
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery
25% on net book value
Fixtures, fittings & equipment
25% on net book value
Motor vehicles
15% on net book value
1.6
Stock and work in progress
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is based upon a first in first out basis. Net realisable value represents estimated selling price less costs to complete and sell.
1.7
Long term contracts
Amounts recoverable on long term contracts, which are included in debtors, are stated at the net sales value of the work done after provision for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Excess progress payments are included in creditors as payments on account.
DENVAL CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2015
1
Accounting policies (Continued)
- 7 -
2
Operating (loss)/profit
2015
2014
£
£
Operating (loss)/profit is stated after charging:
Amortisation of intangible assets
40,725
40,725
Depreciation of tangible assets
12,717
11,951
Directors' remuneration
145,737
52,877
and after crediting:
Government grants
-
3,431
3
Taxation
2015
2014
£
£
U.K. corporation tax
(21,965)
21,965
Deferred tax
Origination and reversal of timing differences
3,811
8,683
(18,154)
30,648
4
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2015 & at 31 December 2015
407,253
Amortisation
At 1 January 2015
137,061
Charge for the year
40,725
At 31 December 2015
177,786
Net book value
At 31 December 2015
229,467
At 31 December 2014
270,193
DENVAL CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2015
- 8 -
5
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2015
112,384
Additions
29,843
At 31 December 2015
142,227
Depreciation
At 1 January 2015
61,513
Charge for the year
12,717
At 31 December 2015
74,230
Net book value
At 31 December 2015
67,997
At 31 December 2014
50,872
6
Debtors
2015
2014
£
£
Trade debtors
391,180
443,385
Amounts recoverable on long term contracts
1,126,380
1,456,062
Other debtors
210,139
330,395
1,727,699
2,229,842
Within other debtors is a directors loan to JL Morris of £3,750 (2014: £80). This loan is unsecured and interest free.
DENVAL CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2015
- 9 -
7
Creditors: amounts falling due within one year
2015
2014
£
£
Bank loans and overdrafts
77,695
74,228
Trade creditors
1,438,745
1,698,865
Taxation and social security
160,897
114,587
Other creditors
683,686
800,974
2,361,023
2,688,654
Included within other creditors there is directors loan account of £65,473 (2014: £146,540), which is interest free, unsecured and has no set repayment terms.
8
Creditors: amounts falling due after more than one year
2015
2014
£
£
Bank loans
216,854
294,842
Analysis of loans
Wholly repayable within five years
294,549
369,070
Included in current liabilities
(77,695)
(74,228)
216,854
294,842
The bank loan is secured on all monies and liabilities by a fixed and floating charge.
9
Provisions for liabilities
Deferred tax liability
£
Balance at 1 January 2015
8,683
Profit and loss account
3,544
Balance at 31 December 2015
12,227
The deferred tax liability is made up as follows:
2015
2014
£
£
Accelerated capital allowances
12,227
8,683
DENVAL CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2015
- 10 -
10
Share capital
2015
2014
£
£
Allotted, called up and fully paid
85 Ordinary Shares of £1 each
85
100
11
Statement of movements on reserves
Share premium account
Profit
and loss
account
£
£
Balance at 1 January 2015
4,305
51,932
Loss for the year
-
(194,521)
Purchase of own shares
-
(12,680)
Share premium - other movements
(4,305)
-
Balance at 31 December 2015
-
(155,269)
12
Financial commitments
At 31 December 2015 the company was committed to making the following payments under non-cancellable operating leases in the year to 31 December 2016:
2015
2014
£
£
Operating leases which expire:
Within one year
2,320
-
Between two and five years
89,066
69,960
91,386
69,960
13
Control
The ultimate parent company is considered to be Brunel Plant Services Limited, a company incorporated in the United Kingdom and registered in England & Wales. A copy of the financial statements of Brunel Plant Services Limited can be obtained from Companies House, Crown Way, Maindy, Cardiff.
In the opinion of the directors the ultimate controlling party is Mr A J Morris, who together with his wife Mrs P L Morris own 100% of the issued share capital of Brunel Plant Services Limited.
DENVAL CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2015
- 11 -
14
Related party relationships and transactions
At the end of the year the company owed £
422,487
(201
4
: £
389,753
) to Brunel Plant Services Limited.
During the year the company provided goods and services to Denver Drilling Services Limited to the value of
£nil
(201
4
: £
36,000
). The company purchased goods and services from Denver Drilling Services Limited to the value of £
nil
(201
4
: £
475
). As at the end of the year the company was owed £
144,530
(201
4
: £
141,707)
from Denver Drilling Services Limited.
During the year the company provided goods and services to Capital Sheet Metal Limited to the value of £
291,249
(201
4
: £
nil
). Included within
Creditors
is £
90,112 due to
(201
4
: £
91,363 due from
) Capital Sheet Metal Limited.
The company purchased goods and services from Capital Sheet Metal Limited to the value of £
291,249
(201
4
: £
210,171
). During the year the company charged Capital Sheet Metal Limited management charge of £
50,000
(201
4
: £
10,000
). As at the
year end,
the company owed Capital Sheet Metal Limited £
nil
(201
4
: £
178,289
).
At the 31 December the company owed £4,007 (2014: £4,020) to Denver Construction Limited, the balance is included within Other creditors.
The above companies are related due to common ownership and directorship.
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