Company registration number SC106486 (Scotland)
CHARLES PHILLIPS & SONS (OF EDINBURGH) LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
PAGES FOR FILING WITH REGISTRAR
CHARLES PHILLIPS & SONS (OF EDINBURGH) LTD
CONTENTS
Page
Statement of financial position
1 - 2
Notes to the financial statements
4 - 9
CHARLES PHILLIPS & SONS (OF EDINBURGH) LTD
STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2023
31 May 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
1,331,359
355,594
Current assets
Stocks
517,285
520,043
Debtors
4
402
50,664
Cash at bank and in hand
30,235
9,641
547,922
580,348
Creditors: amounts falling due within one year
5
(1,087,244)
(1,112,455)
Net current liabilities
(539,322)
(532,107)
Total assets less current liabilities
792,037
(176,513)
Creditors: amounts falling due after more than one year
6
(20,000)
(30,000)
Provisions for liabilities
(30,232)
(8,813)
Net assets/(liabilities)
741,805
(215,326)
Capital and reserves
Called up share capital
1,000
1,000
Revaluation reserve
969,768
Profit and loss reserves
(228,963)
(216,326)
Total equity
741,805
(215,326)
The director of the company has elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 31 May 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
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.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
CHARLES PHILLIPS & SONS (OF EDINBURGH) LTD
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MAY 2023
31 May 2023
- 2 -
The financial statements were approved and signed by the director and authorised for issue on 29 February 2024
P H Young
Director
Company Registration No. SC106486
CHARLES PHILLIPS & SONS (OF EDINBURGH) LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023
- 3 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 June 2021
1,000
128,357
129,357
Year ended 31 May 2022:
Loss and total comprehensive income for the year
-
-
(344,683)
(344,683)
Balance at 31 May 2022
1,000
(216,326)
(215,326)
Year ended 31 May 2023:
Profit for the year
-
-
957,131
957,131
Other comprehensive income:
Revaluation of tangible fixed assets
-
969,768
-
969,768
Total comprehensive income for the year
-
969,768
957,131
1,926,899
Transfers
-
(969,768)
(969,768)
Balance at 31 May 2023
1,000
969,768
(228,963)
741,805
CHARLES PHILLIPS & SONS (OF EDINBURGH) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
- 4 -
1
Accounting policies
Company information
Charles Phillips & Sons (of Edinburgh) Ltd is a private company limited by shares incorporated in Scotland. The registered office is Drummore House, North Berwick Road, Musselburgh, Midlothian, United Kingdom, EH21 8JT.
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 amounts 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
Going concern
The directors have considered a period of at least twelve months from the date on which these financial statements have been signed and having considered all information available to them, believe it appropriate to prepare the financial statements on a going concern basis.
This assessment of going concern includes the current inflationary pressures impacting on costs. The directors are satisfied that the company has adequate resources to continue to operate for the foreseeable future.
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. Turnover represents the sale of art, gemstones and other chattels to individuals and is recognised when the rights and rewards of ownership are transferred to the customer.
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:
Freehold land and buildings
4% straight line
Fixtures and fittings
15% straight line
Motor vehicles
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.
CHARLES PHILLIPS & SONS (OF EDINBURGH) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 5 -
Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.
Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in 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).
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
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 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.
CHARLES PHILLIPS & SONS (OF EDINBURGH) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 6 -
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 payments 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. Amounts 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.
1.9
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.
1.10
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 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.
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.
1.11
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.
CHARLES PHILLIPS & SONS (OF EDINBURGH) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 7 -
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Government grants
Government grants are recognised at the fair value of the asset received 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.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
3
7
3
Tangible fixed assets
Freehold land and buildings
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost or valuation
At 1 June 2022
659,351
436,555
245,914
1,341,820
Disposals
(2,789)
(2,789)
Revaluation
1,000,000
1,000,000
At 31 May 2023
1,659,351
433,766
245,914
2,339,031
Depreciation and impairment
At 1 June 2022
341,163
404,053
241,010
986,226
Depreciation charged in the year
9,148
10,183
4,904
24,235
Eliminated in respect of disposals
(2,789)
(2,789)
At 31 May 2023
350,311
411,447
245,914
1,007,672
Carrying amount
At 31 May 2023
1,309,040
22,319
1,331,359
At 31 May 2022
318,188
32,502
4,904
355,594
CHARLES PHILLIPS & SONS (OF EDINBURGH) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
3
Tangible fixed assets
(Continued)
- 8 -
Land and buildings with a carrying amount of £309,040 were revalued at the year end based on the directors assessment which is supported by an offer received in August 2022. The valuation was based on recent market transactions on arm's length terms for similar properties.
Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts would have been approximately £309,040, being cost £659,351 and depreciation £350,311
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
210
36,233
Other debtors
192
14,431
402
50,664
5
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
10,000
10,000
Hire purchase
2,401
Pension creditor
232
Trade creditors
390,459
338,502
Corporation tax
34,496
Other taxation and social security
26,634
50,859
Other creditors
647,989
666,407
Accruals and deferred income
12,162
9,558
1,087,244
1,112,455
Included within creditors due within one year is amounts due on hire purchase of £nil (2022: £2,401).
Included within bank loans and overdrafts is £10,000 (2022: £10,000) secured by a guarantee from the UK Government under the Coronavirus Business Interruption Loan Scheme/Bounce Back Loan Scheme.
6
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans
20,000
30,000
Included in bank loans is £20,000 (2022: £30,000) secured by a guarantee from the UK Government under the Coronavirus Business Interruption Loan Scheme/Bounce Back Loan Scheme.
CHARLES PHILLIPS & SONS (OF EDINBURGH) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 9 -
7
Retirement benefit schemes
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £1,438 (2022: £1,950). Contributions totalling £nil (2022: £232) were payable to the fund at the Statement of Financial Position date and are included in creditors.