Company No:
Contents
DIRECTORS | R A Bradley |
S J Bradley | |
R De Lange | |
J B Lawrence | |
REGISTERED OFFICE | Sophia House |
28 Cathedral Road | |
Cardiff | |
CF11 9LJ | |
United Kingdom | |
COMPANY NUMBER | 09155925(England and Wales) |
ACCOUNTANT | Deloitte LLP |
Fusion Point | |
2 Dumballs Road | |
Cardiff | |
CF10 5BF | |
United Kingdom |
We are subject to the ethical and other professional requirements of the Institute of Chartered Accountants in England and Wales (ICAEW) which are detailed at _http://www.icaew.com/en/members/regulations-standards-and-guidance/_
It is your duty to ensure that Icosa Water Ltd 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 Icosa Water Ltd. You consider that Icosa Water Ltd 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 Icosa Water Ltd. 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.
Accountant
2 Dumballs Road
Cardiff
CF10 5BF
United Kingdom
2019 | 2018 | |||
Note | £ | £ | ||
Fixed assets | ||||
Tangible assets | 3 |
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Investments | 4 |
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32,706 | 10,449 | |||
Current assets | ||||
Stocks | 5 |
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Debtors | 6 |
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Cash at bank and in hand |
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2,858,088 | 1,013,201 | |||
Creditors | ||||
Amounts falling due within one year | 7 | (
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Net current assets | 106,697 | 504,671 | ||
Total assets less current liabilities | 139,403 | 515,120 | ||
Net assets | 139,403 | 515,120 | ||
Called-up share capital |
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Profit and loss account | (
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Total shareholders' funds | 139,403 | 515,120 |
Directors’ responsibilities:
The financial statements of Icosa Water Ltd (registered number:
R A Bradley
Director |
The principal accounting policies are summarised below. They have all been applied consistently throughout the year and to the preceding year.
Icosa Water Ltd (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Sophia House, 28 Cathedral Road, Cardiff, CF11 9LJ, United Kingdom.
The financial statements have been prepared under the historical cost convention and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council.
The functional currency of Icosa Water Ltd is considered to be pounds sterling because that is the currency of the primary economic environment in which the Company operates.
The Company has taken advantage of the option not to prepare consolidated financial statements contained in Section 398 of the Companies Act 2006 on the basis that the Company and its subsidiary undertaking qualifies as a small group.
The directors have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
Office equipment - 3 years
Plant and machinery - 5 years
Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.
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.
Financial assets and liabilities
Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through the Profit and Loss Account, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the Company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the Company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.
Investments
Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through the Profit and Loss Account. Where fair value cannot be measured reliably, investments are measured at cost less impairment.
Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Profit and Loss Account as described below.
Non-financial assets
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
Financial assets
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.
Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's accounts. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws.
Deferred tax assets and liabilities are not discounted.
Contracts with developers
The Company has one commitment to the developer: the service of connecting households to an operational water and wastewater network, having built or adopted such networks for that purpose. As either the developer or the Company may be making cash payments to the other, the general approach to calculating revenue from contracts with developers takes in to account the fair value of any network asset(s) received from the developer, plus payments received from the developer, less payments made to the developer.
The payments received from the developer include payments for design and licensing fees, connection charges, adoption fees, fees for the construction of on-site and off-site pipes and other network infrastructure (e.g. pumping stations) but does not include infrastructure charges. Payments to the developer may be part of the adoption of network assets. Revenue from a contract with a developer for a particular development is recognised proportionally as each house on that development is connected by the Company based on the number of houses connected out of the total to be connected.
Infrastructure charges
The Company’s obligation in relation to the infrastructure charges is to collect the charges from developers and then to pass them on to monopoly providers. The Company is acting as an agent, and receives no commission, therefore no revenue is recognised in relation to these charges.
Contracts with Icosa Water Services Limited
The Company accounts for the construction and sale of water and wastewater networks to Icosa Water Services Limited as a construction contract using the percentage of completion method.
The sale of assets adopted from developers to Icosa Water Services Limited is treated as the sale of inventory with corresponding revenue and cost of sales recognised at the point of sale.
Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.
2019 | 2018 | |
Number | Number | |
Average number of persons employed by the Company during the year, including directors |
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Plant and machinery | Office equipment | Total | |
£ | £ | £ | |
Cost/Valuation | |||
At 01 April 2018 |
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Additions |
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At 31 March 2019 |
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Accumulated depreciation | |||
At 01 April 2018 |
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Charge for the year |
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At 31 March 2019 |
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Net book value | |||
At 31 March 2019 |
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At 01 April 2018 |
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Investments in subsidiaries | |
£ | |
Cost | |
At 01 April 2018 |
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At 31 March 2019 |
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Carrying value at 31 March 2019 |
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Carrying value at 31 March 2018 |
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The Company holds 100% of the share capital in the subsidiary undertaking, Icosa Water Services Limited. Icosa Water Services Limited's principal activity is that of a water and wastewater network operator and its registered office is Sophia House, 28 Cathedral Road, Cardiff, CF11 9LJ.
The Company's investments are secured as a guarantee for a loan in the subsidiary company, Icosa Water Services Limited.
Total | |
£ | |
Carrying value before impairment | |
At 01 April 2018 |
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At 31 March 2019 |
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Provisions for impairment | |
At 01 April 2018 |
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At 31 March 2019 |
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Carrying value at 31 March 2019 |
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Carrying value at 31 March 2018 |
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2019 | 2018 | |
£ | £ | |
Work in progress |
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2019 | 2018 | |
£ | £ | |
Trade debtors |
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Amounts owed by own subsidiaries (note 8) |
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Other debtors |
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2019 | 2018 | |
£ | £ | |
Trade creditors |
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Other creditors |
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Other taxation and social security |
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Accruals and deferred income |
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The Company has taken advantage of the exemptions available in Section 33 Related Party Transactions of FRS 102 to not disclose transactions between wholly owned subsidiaries in the group.
The total aggregate directors remuneration for the year was £348,000 (2018: £348,000). The directors are the only key management personnel of the Company.