Company Registration No. 05742419 (England and Wales)
ALPHA AGGREGATES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
PAGES FOR FILING WITH REGISTRAR
ALPHA AGGREGATES LIMITED
CONTENTS
Page
Accountants' report
1
Statement of financial position
2 - 3
Notes to the financial statements
4 - 8
ALPHA AGGREGATES LIMITED
REPORT TO THE DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY ACCOUNTS OF ALPHA AGGREGATES LIMITED
- 1 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Alpha Aggregates Limited for the year ended 31 March 2020 which comprise, the statement of financial position and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Association of Chartered Certified Accountants, we are subject to its ethical and other professional requirements which are detailed at https://www.accaglobal.com/gb/en/member/standards/rules-and-standards/rulebook.html.
This report is made solely to the Board of Directors of Alpha Aggregates Limited, as a body, in accordance with the terms of our engagement letter
.
Our work has been undertaken solely to prepare for your approval the financial statements of Alpha Aggregates Limited and state those matters that we have agreed to state to the Board of Directors of Alpha Aggregates Limited, as a body, in this report in accordance with
the requirements of the Association of Chartered Certified Accountants
as detailed at
https://www.accaglobal.com/content/dam/ACCA_Global/Technical/fact/technical-factsheet-163.pdf. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Alpha Aggregates Limited and its Board of Directors as a body, for our work or for this report.
It is your duty to ensure that Alpha Aggregates 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 profit
of Alpha Aggregates Limited. You consider that Alpha Aggregates 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 Alpha Aggregates 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.
Hawkins Priday Ltd
31 March 2021
Chartered Certified Accountants
5 Bridge Street
Hereford
HR4 9DF
ALPHA AGGREGATES LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2020
31 March 2020
- 2 -
2020
2019
Notes
£
£
£
£
Non-current assets
Intangible assets
3
940
1,050
Property, plant and equipment
4
756,759
884,810
757,699
885,860
Current assets
Inventories
807
164
Trade and other receivables
5
1,396,141
1,165,389
1,396,948
1,165,553
Current liabilities
6
(1,447,697)
(1,182,697)
Net current liabilities
(50,749)
(17,144)
Total assets less current liabilities
706,950
868,716
Non-current liabilities
7
(209,196)
(269,561)
Provisions for liabilities
(122,094)
(140,486)
Net assets
375,660
458,669
Equity
Called up share capital
1,000
1,000
Retained earnings
374,660
457,669
Total equity
375,660
458,669
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 31 March 2020 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.
ALPHA AGGREGATES LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 MARCH 2020
31 March 2020
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 31 March 2021 and are signed on its behalf by:
Mr M J Powell
Director
Company Registration No. 05742419
ALPHA AGGREGATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
- 4 -
1
Accounting policies
Company information
Alpha Aggregates Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
5 Bridge Street, Hereford, HR4 9DF.
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
Revenue
Revenue 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.
The company recognises revenue when the amount of revenue can be measured reliably, when it is probable economic benefits will flow to the entity and when specific criteria have been met for the company's trading activities.
The company acts as a merchant supplying aggregates, sands and other associated construction materials.
1.3
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.
Patents & licences
10% straight line
1.4
Property, plant and equipment
Property, plant and equipment
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:
Leasehold improvements
2% Straight Line
Plant and equipment
25% Reducing Balance
Fixtures and fittings
25% Reducing Balance and 20 years Straight Line
Computers
33% Straight Line
Motor vehicles
25% Reducing Balance, 5 years Sraight Line
ALPHA AGGREGATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 5 -
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
.
Depreciation rate for lorries and trucks included within motor vehicles has changed from 25% reducing balance to 5 year straight line, effective 1 April 2019. This has increased the depreciation charge for the current year by £55,059.
1.5
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.
Basic financial assets
Basic financial assets, which include trade and other receivables 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
. 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 trade and other payables and bank loans
are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction
. Financial liabilities classified as payable within one year are not amortised.
Trade payables
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 payables are recognised initially at transaction price
.
1.6
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.
1.7
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.
ALPHA AGGREGATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
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 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.
1.8
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 non-current 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.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
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
cost and
fair
value at the date of inception. 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.
Rentals paid under operating leases are charged to profit and loss on a straight line basis over the period of the lease.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
27
22
ALPHA AGGREGATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 7 -
3
Intangible fixed assets
Other
£
Cost
At 1 April 2019 and 31 March 2020
1,096
Amortisation and impairment
At 1 April 2019
46
Amortisation charged for the year
110
At 31 March 2020
156
Carrying amount
At 31 March 2020
940
At 31 March 2019
1,050
4
Property, plant and equipment
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 April 2019
-
1,485,030
1,485,030
Additions
24,412
177,060
201,472
Disposals
-
(155,089)
(155,089)
At 31 March 2020
24,412
1,507,001
1,531,413
Depreciation and impairment
At 1 April 2019
-
600,220
600,220
Depreciation charged in the year
-
278,005
278,005
Eliminated in respect of disposals
-
(103,571)
(103,571)
At 31 March 2020
-
774,654
774,654
Carrying amount
At 31 March 2020
24,412
732,347
756,759
At 31 March 2019
-
884,810
884,810
ALPHA AGGREGATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 8 -
5
Trade and other receivables
2020
2019
Amounts falling due within one year:
£
£
Trade receivables
1,228,994
1,108,188
Other receivables
167,147
57,201
1,396,141
1,165,389
6
Current liabilities
2020
2019
£
£
Bank loans and overdrafts
83,476
9,960
Trade payables
1,034,373
898,888
Taxation and social security
105,594
24,012
Other payables
224,254
249,837
1,447,697
1,182,697
The bank overdraft is secured by fixed and floating charges over all property of the company. Hire purchase contracts within other payables are secured against the assets to which they relate.
7
Non-current liabilities
2020
2019
£
£
Other payables
209,196
269,561
8
Directors' advances, credits and guarantees
At the start of the year, a loan was outstanding to the Company from the Directors Mr M J Powell and Mrs K L Powell of £23,437.
Further advances were provided to the Directors during the year totalling £30,588.
Repayments were made to the company by Mr M J Powell and Mrs K L Powell of £23,437.
The maximum balance outstanding from Mr M J Powell and Mrs K L Powell during the year was £31,437 and the balance outstanding to the Company as at the year end date was £30,588.
The loan is repayable to the Company on demand. No interest has been charged or is payable to the Company.