Company registration number 09266041 (England and Wales)
ELMBRIDGE BUILDING CONTROL SERVICES LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
PAGES FOR FILING WITH REGISTRAR
ELMBRIDGE BUILDING CONTROL SERVICES LTD
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 13
ELMBRIDGE BUILDING CONTROL SERVICES LTD
BALANCE SHEET
AS AT
31 MARCH 2022
31 March 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
5
526
4,647
Current assets
Debtors
6
49,901
56,885
Cash at bank and in hand
455,391
381,855
505,292
438,740
Creditors: amounts falling due within one year
7
(707,658)
(613,476)
Net current liabilities
(202,366)
(174,736)
Total assets less current liabilities
(201,840)
(170,089)
Provisions for liabilities
9
(342,100)
(505,777)
Net liabilities
(543,940)
(675,866)
Capital and reserves
Called up share capital
12
1
1
Profit and loss reserves
(543,941)
(675,867)
Total equity
(543,940)
(675,866)
ELMBRIDGE BUILDING CONTROL SERVICES LTD
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2022
31 March 2022
- 2 -
In accordance with section 444 of the Companies Act 2006, all
of
the members of the company have consented to the
preparation of abridged financial statements pursuant to paragraph 1A of Schedule 1 to the Small Companies and Groups (Accounts and Directors’ Report) Regulations (SI 2008/409)(b).
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 31 March 2022 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 25 August 2022 and are signed on its behalf by:
M Webb
Director
Company Registration No. 09266041
ELMBRIDGE BUILDING CONTROL SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
- 3 -
1
Accounting policies
Company information
Elmbridge Building Control Services Ltd is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
53/57 High Street, Cobham, Surrey, United Kingdom, KT11 3DP.
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Going concern
The financial statements have been prepared on a going concern basis. The net current liability position of £202,366 is primarily represented by deferred income of £644,063. This income will be recognised as the company completes the building inspection work this represents.
true
The cash flow cycle of the company is such that the company will be able to meet its liabilities as they fall due.
It is on this basis that the Directors have considered going concern and believe it to be appropriate.
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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.
ELMBRIDGE BUILDING CONTROL SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 4 -
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
Tangible fixed assets
Tangible fixed assets
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:
Fixtures, fittings & equipment
25% Straight line
Computer equipment
25% 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
.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
ELMBRIDGE BUILDING CONTROL SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 5 -
1.6
Cash at bank and in hand
Cash and cash equivalents
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.
1.7
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
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, 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.
1.8
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.
ELMBRIDGE BUILDING CONTROL SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 6 -
1.9
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in
profit
or
loss
immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in
profit
or
loss
depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.10
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.
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.
ELMBRIDGE BUILDING CONTROL SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 7 -
1.11
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.
1.12
Retirement benefits
The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.
The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.
The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in
profit
or
loss
as other finance revenue or cost.
Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.
The
net
defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.
1.13
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
ELMBRIDGE BUILDING CONTROL SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 8 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant
effect on amounts recognised in the financial statements.
Post employment benefits
The
company is a participating member of the mutli-employer Surrey Pension fund defined benefit pension scheme which is part of the national Local Government Pension Scheme
. All postemployment benefits associated with
this
schemes have been
accounted for in accordance with IAS 19 “Employee Benefits
.
A
ll actuarial gains and losses
have been recognised immediately through the Statement of Comprehensive Income.
For
this
defined benefit pension scheme, pension valuations have
been performed using specialist advice obtained from independent
qualified actuaries. In performing these valuations, significant
actuarial assumptions and judgments have been made to determine
the defined benefit obligation, in particular with regard to discount
rate, inflation and mortality
.
Appropriate sensitivities have been performed and disclosed in Note
10.
Deferred Income
Deferred income
represents the value of
fees received in respect of planning and inspection
work
, where the work has not been fully completed. At the point the work is completed and inspections are signed off, the income will then be recognised in full. If inspections are in progress at the year end, the amount of income deferred is calculated by reference to the total number of inspections required for the work compared to the expected number of inspections left before the work will be complete. The judgement of the Directors is required when determining the expected number of inspections left before the work can be regarded as complete. When making the judgement the Directors draw in historical information involving numbers of inspections as well as the type of inspection being completed.
ELMBRIDGE BUILDING CONTROL SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 9 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year
was
7
(2021 - 7)
2022
2021
Number
Number
Total
7
7
4
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
(677)
Deferred tax
Origination and reversal of timing differences
(989)
Total tax credit
(677)
(989)
5
Tangible fixed assets
Total
£
Cost
At 1 April 2021
20,829
Additions
703
At 31 March 2022
21,532
Depreciation and impairment
At 1 April 2021
16,182
Depreciation charged in the year
4,824
At 31 March 2022
21,006
Carrying amount
At 31 March 2022
526
At 31 March 2021
4,647
ELMBRIDGE BUILDING CONTROL SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 10 -
6
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
27,406
37,694
Other debtors
22,495
19,191
49,901
56,885
7
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans
50,000
Trade creditors
3,384
12,767
Taxation and social security
51,712
31,691
Deferred income
8
644,063
509,722
Other creditors
5,499
6,296
Accruals
3,000
3,000
707,658
613,476
The bank loan of £50,000 represents the Bounce Back loan taken by the company during the year. The loan was repaid in full on 10 May 2021.
8
Deferred income
2022
2021
£
£
Deferred income
644,063
509,722
Deferred income
represents the value of
fees received in respect of planning and inspection
work
, where the work has not been fully completed. At the point the work is completed and inspections are signed off, the income will then be recognised in full. If inspections are in progress at the year end, the amount of income deferred is calculated by reference to the total number of inspections required for the work compared to the expected number of inspections left before the work will be complete.
ELMBRIDGE BUILDING CONTROL SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 11 -
9
Provisions for liabilities
2022
2021
£
£
Deferred tax liabilities
100
777
Retirement benefit obligations
10
342,000
505,000
342,100
505,777
10
Retirement benefit schemes
Defined contribution schemes
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
Defined benefit schemes
The company operates a defined benefit scheme for qualifying employees. Under the scheme the employees
accrue between 1/80th and 1/60th
of
their
final salary
for each year of service, to be received per annum upon attainment of a retirement age of 65
. No other post retirement benefits are provided.
The most recent actuarial valuations of plan assets and the present value of the defined benefit obligation were carried out
in during April 2022
by
Hymans Robertson LLP
, Fellow of the Institute of Actuaries. The present value of the defined benefit obligation, the related current service cost and past service cost were measured using the projected unit credit method.
2022
2021
Key assumptions
%
%
Discount rate
2.75
2.05
Expected rate of increase of pensions in payment
3.15
2.8
Expected rate of salary increases
4.05
3.7
Mortality assumptions
2022
2021
Assumed life expectations on retirement at age 65:
Years
Years
Current Pensioners
- Males
22.1
22.3
- Females
24.5
24.7
Future Pensioners
- Males
23.1
23.4
- Females
26.2
26.4
ELMBRIDGE BUILDING CONTROL SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
10
Retirement benefit schemes
(Continued)
- 12 -
2022
2021
Amounts recognised in the profit and loss account
£
£
Current service cost
62,000
50,000
Net interest on net defined benefit liability/(asset)
11,000
8,000
Total costs
73,000
58,000
2022
2021
Amounts taken to other comprehensive income
£
£
Actual return on scheme assets
(107,000)
(316,000)
Less: calculated interest element
28,000
25,000
Return on scheme assets excluding interest income
(79,000)
(291,000)
Actuarial changes related to obligations
(140,000)
419,000
Total costs/(income)
(219,000)
128,000
The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:
2022
2021
£
£
Present value of defined benefit obligations
1,834,000
1,892,000
Fair value of plan assets
(1,492,000)
(1,387,000)
Deficit in scheme
342,000
505,000
2022
Movements in the present value of defined benefit obligations
£
Liabilities at 1 April 2021
1,892,000
Current service cost
62,000
Benefits paid
(30,000)
Contributions from scheme members
11,000
Actuarial gains and losses
(140,000)
Interest cost
39,000
At 31 March 2022
1,834,000
ELMBRIDGE BUILDING CONTROL SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
10
Retirement benefit schemes
(Continued)
- 13 -
The defined benefit obligations arise from plans which are wholly or partly funded.
2022
Movements in the fair value of plan assets
£
Fair value of assets at 1 April 2021
1,387,000
Interest income
28,000
Return on plan assets (excluding amounts included in net interest)
79,000
Benefits paid
(30,000)
Contributions by the employer
17,000
Contributions by scheme members
11,000
At 31 March 2022
1,492,000
The actual return on plan assets was £107,000 (2021 - £316,000).
2022
2021
Fair value of plan assets at the reporting period end
£
£
Equity instruments
1,119,000
1,054,120
Debt instruments
208,880
221,920
Property
119,360
69,350
Cash
44,760
41,610
1,492,000
1,387,000
11
Operating lease commitments
During the year the company took new premises and entered into a 5 year lease, ending on 31st October 2023. Annual rental of £20,500 is payable quarterly in advance, under this lease.
12
Called up share capital
2022
2021
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary share of 1p each
1
1
2022-03-31
2021-04-01
false
25 August 2022
CCH Software
CCH Accounts Production 2022.100
No description of principal activity
R Lee
D O'keeffe
M Webb
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