Company Registration No. 11108233 (England and Wales)
SQUAREDEAL BUILDING SUPPLIES LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
PAGES FOR FILING WITH REGISTRAR
SQUAREDEAL BUILDING SUPPLIES LTD
CONTENTS
Page
Accountants' report
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 7
SQUAREDEAL BUILDING SUPPLIES LTD
CHARTERED ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF SQUAREDEAL BUILDING SUPPLIES LTD FOR THE YEAR ENDED 31 DECEMBER 2019
- 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 Squaredeal Building Supplies Ltd for the year ended 31 December 2019 which comprise, the balance sheet 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 Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/members/regulations-standards-and-guidance
.
This report is made solely to the Board of Directors of Squaredeal Building Supplies Ltd, as a body, in accordance with the terms of our engagement
.
Our work has been undertaken solely to prepare for your approval the financial statements of Squaredeal Building Supplies Ltd
and state those matters that we have agreed to state to the Board of Directors of Squaredeal Building Supplies Ltd, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Squaredeal Building Supplies Ltd and its Board of Directors as a body, for
our work or for this report.
It is your duty to ensure that Squaredeal Building Supplies 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 profit
of Squaredeal Building Supplies Ltd. You consider that Squaredeal Building Supplies 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 Squaredeal Building Supplies 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.
MHA Carpenter Box
16 October 2020
Chartered Accountants
Amelia House
Crescent Road
Worthing
West Sussex
BN11 1QR
SQUAREDEAL BUILDING SUPPLIES LTD
BALANCE SHEET
AS AT
31 DECEMBER 2019
31 December 2019
- 2 -
2019
2018
Notes
£
£
£
£
Fixed assets
Intangible assets
3
330,000
-
Tangible assets
4
34,512
37,267
364,512
37,267
Current assets
Stocks
410,000
303,000
Debtors
5
321,723
277,454
Cash at bank and in hand
309,618
39,934
1,041,341
620,388
Creditors: amounts falling due within one year
6
(1,201,605)
(575,460)
Net current (liabilities)/assets
(160,264)
44,928
Total assets less current liabilities
204,248
82,195
Provisions for liabilities
(6,600)
(7,100)
Net assets
197,648
75,095
Capital and reserves
Called up share capital
2
2
Profit and loss reserves
197,646
75,093
Total equity
197,648
75,095
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 December 2019 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.
SQUAREDEAL BUILDING SUPPLIES LTD
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2019
31 December 2019
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 16 October 2020 and are signed on its behalf by:
Mr S C Eke
Mr A J Livermore
Director
Director
Company Registration No. 11108233
SQUAREDEAL BUILDING SUPPLIES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 4 -
1
Accounting policies
Company information
Squaredeal Building Supplies Ltd is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Amelia House, Crescent Road, Worthing, West Sussex, BN11 1QR.
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.
1.2
Going concern
The financial statements have been prepared on a going concern basis. The Directors have considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. The COVID-19 pandemic and the ensuing economic shutdown has had a significant impact on the company’s operations. [Explain the specific circumstances of the entity]. In response to the COVID-19 pandemic, the Directors have performed a robust analysis of forecast future cash flows taking into account the potential impact on the business of possible future scenarios arising from the impact of COVID-19. This analysis also considers the effectiveness of available measures to assist in mitigating the impact
true
Based on these assessments and having regard to the resources available to the entity, the Directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and accounts.
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.
1.4
Intangible fixed assets - goodwill
Goodwill represents
the amount of consideration transferred following the acquisition of trade of an associated company.
For the purposes of
an
impairment
review, the directors are satisfied that this goodwill exists, and the acquisition sum represents a fair value.
Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is estimated to be 4 years.
1.5
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.
SQUAREDEAL BUILDING SUPPLIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 5 -
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:
Plant and equipment
25% per annum on a diminishing balance basis
Fixtures and fittings
25% per annum on a diminishing balance basis
Computers
25% per annum on a diminishing balance basis
Motor vehicles
25% per annum on a diminishing balance basis
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
.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
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.
1.8
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.
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
.
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.
1.9
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.
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
.
SQUAREDEAL BUILDING SUPPLIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 6 -
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 11 (2018 - 11
).
3
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2019
-
Additions
440,000
At 31 December 2019
440,000
Amortisation and impairment
At 1 January 2019
-
Amortisation charged for the year
110,000
At 31 December 2019
110,000
Carrying amount
At 31 December 2019
330,000
At 31 December 2018
-
SQUAREDEAL BUILDING SUPPLIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 7 -
4
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2019
26,956
1,357
-
13,250
41,563
Additions
-
-
8,076
-
8,076
At 31 December 2019
26,956
1,357
8,076
13,250
49,639
Depreciation and impairment
At 1 January 2019
3,936
84
-
276
4,296
Depreciation charged in the year
5,755
318
1,514
3,244
10,831
At 31 December 2019
9,691
402
1,514
3,520
15,127
Carrying amount
At 31 December 2019
17,265
955
6,562
9,730
34,512
At 31 December 2018
23,020
1,273
-
12,974
37,267
5
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
130,628
193,405
Other debtors
191,095
84,049
321,723
277,454
6
Creditors: amounts falling due within one year
2019
2018
£
£
Bank loans and overdrafts
-
45
Trade creditors
458,941
168,695
Taxation and social security
118,840
56,887
Other creditors
623,824
349,833
1,201,605
575,460
7
Related party transactions
During the year the company entered into numerous transactions with Squaredeal UPVC and Renewables Ltd, a company under common control. These transactions were at arms length.