Company Registration No. SC159622 (Scotland)
THISTLE WINDOWS & CONSERVATORIES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2018
PAGES FOR FILING WITH REGISTRAR
THISTLE WINDOWS & CONSERVATORIES LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 11
THISTLE WINDOWS & CONSERVATORIES LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2018
31 August 2018
- 1 -
2018
2017
Notes
£
£
£
£
Fixed assets
Tangible assets
3
2,624,833
1,499,724
Investment properties
4
-
200,000
2,624,833
1,699,724
Current assets
Stocks
5
2,773,124
1,809,639
Debtors
6
548,823
629,093
Cash at bank and in hand
1,132
170,966
3,323,079
2,609,698
Creditors: amounts falling due within one year
7
(3,228,854)
(2,046,240)
Net current assets
94,225
563,458
Total assets less current liabilities
2,719,058
2,263,182
Creditors: amounts falling due after more than one year
8
(1,034,022)
(1,025,038)
Provisions for liabilities
Deferred tax liability
177,405
68,814
(177,405)
(68,814)
Net assets
1,507,631
1,169,330
Capital and reserves
Called up share capital
9
10,000
10,000
Revaluation reserve
570,335
-
Profit and loss reserves
927,296
1,159,330
Total equity
1,507,631
1,169,330
THISTLE WINDOWS & CONSERVATORIES LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 AUGUST 2018
31 August 2018
- 2 -
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 August 2018 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 23 May 2019 and are signed on its behalf by:
Ian James Bruce
Director
Company Registration No. SC159622
THISTLE WINDOWS & CONSERVATORIES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2018
- 3 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 September 2016
10,000
-
1,172,573
1,182,573
Year ended 31 August 2017:
Profit and total comprehensive income for the year
-
-
130,757
130,757
Dividends
-
-
(144,000)
(144,000)
Balance at 31 August 2017
10,000
-
1,159,330
1,169,330
Year ended 31 August 2018:
Loss for the year
-
-
(64,034)
(64,034)
Other comprehensive income:
Revaluation of tangible fixed assets
-
667,029
-
667,029
Tax relating to other comprehensive income
-
(96,694)
-
(96,694)
Total comprehensive income for the year
-
570,335
(64,034)
506,301
Dividends
-
-
(168,000)
(168,000)
Balance at 31 August 2018
10,000
570,335
927,296
1,507,631
THISTLE WINDOWS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2018
- 4 -
1
Accounting policies
Company information
Thistle Windows & Conservatories Limited is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
Thistle House, Woodside Road, Bridge of Don Industrial Estate, ABERDEEN, AB23 8EF.
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
pound sterling.
The financial statements have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents amounts receivable from the sale and installation of windows, conservatories, kitchens, home improvements and related products.
Revenue from the
supply only of windows, conservatories, kitchens, home improvements and related products
is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, 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.
Revenue from contracts for
the supply and installation of windows, conservatories, kitchens, home improvements and related products
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 are recoverable.
1.3
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:
Land and buildings leasehold
2% on cost
Plant and machinery
25% on reducing balance
Fixtures, fittings & equipment
25% on cost
Motor vehicles
15% on cost
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
.
THISTLE WINDOWS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2018
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 loss
es
are recognised in profit or loss.
1.4
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure
. Subsequently it is measured
at fair value a
t
the reporting end date.
The surplus or deficit on revaluation is recognised in profit or loss.
Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.
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
Stock and work in progress
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.
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 at bank and in hand
Cash and cash equivalents
are basic financial assets
and
include cash in hand
and
deposits held at call with banks
.
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.
Financial instruments are recognised in the company's
balance sheet
when the company becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price including transaction
costs.
THISTLE WINDOWS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2018
1
Accounting policies
(Continued)
- 6 -
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 and bank loans 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. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less.
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 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.
THISTLE WINDOWS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2018
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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 fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
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 are included in the profit and loss account for the period.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 115 (2017 - 101).
THISTLE WINDOWS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2018
- 8 -
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 1 September 2017
896,460
1,328,370
2,224,830
Additions
235,130
465,251
700,381
Disposals
-
(184,301)
(184,301)
Revaluation
618,410
-
618,410
At 31 August 2018
1,750,000
1,609,320
3,359,320
Depreciation and impairment
At 1 September 2017
30,792
694,314
725,106
Depreciation charged in the year
17,827
219,591
237,418
Eliminated in respect of disposals
-
(179,418)
(179,418)
Revaluation
(48,619)
-
(48,619)
At 31 August 2018
-
734,487
734,487
Carrying amount
At 31 August 2018
1,750,000
874,833
2,624,833
At 31 August 2017
865,668
634,056
1,499,724
Land and buildings with a carrying amount of £1,750
,
000
were revalued at
16 October 2018
by
Allied Surveyors Scotland Plc
, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.
If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
2018
2017
£
£
Cost
1,131,590
896,460
Accumulated depreciation
(48,619)
(30,792)
Carrying value
1,082,971
865,668
THISTLE WINDOWS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2018
- 9 -
4
Investment property
2018
£
Fair value
At 1 September 2017
200,000
Disposals
(200,000)
At 31 August 2018
-
The investment property is valued by the directors based on the values of similar properties in the area.
5
Stocks
2018
2017
£
£
Work in progress
2,639,922
1,653,312
Finished goods
133,202
156,327
2,773,124
1,809,639
Work in progress includes £2,095,412 (2017 - £1,360,840) which is considered to be long term.
6
Debtors
2018
2017
Amounts falling due within one year:
£
£
Trade debtors
493,709
570,049
Corporation tax recoverable
8,283
-
Other debtors
46,831
59,044
548,823
629,093
THISTLE WINDOWS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2018
- 10 -
7
Creditors: amounts falling due within one year
2018
2017
£
£
Bank loans and overdrafts
955,907
90,000
Trade creditors
908,295
786,355
Corporation tax
-
23,955
Other taxation and social security
309,532
287,870
Other creditors
1,055,120
858,060
3,228,854
2,046,240
Bank loans and overdrafts are secured by a floating charge over the premises of the company.
Included in other creditors are obligations under finance leases amounting to £236,898 (2017 - £126,063). These amounts are secured over the assets to which they relate.
8
Creditors: amounts falling due after more than one year
2018
2017
£
£
Bank loans and overdrafts
779,513
867,963
Other creditors
254,509
157,075
1,034,022
1,025,038
Bank loans and overdrafts are secured by a floating charge over the premises of the company.
Other creditors represent obligations under finance leases which are secured over the assets to which they relate.
9
Called up share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
10,000 Ordinary shares of £1 each
10,000
10,000
THISTLE WINDOWS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2018
- 11 -
10
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2018
2017
£
£
Within one year
52,000
52,000
Between two and five years
208,000
208,000
In over five years
4,736,333
4,788,333
4,996,333
5,048,333
The company has an annual commitment for a ground lease on its business premises. The total commitments include these lease payments until expiry in 2114.
11
Directors' transactions
Interest free loans have been granted by the directors
to the company
as follows:
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Directors' Loans
-
(92,762)
117,730
(32,000)
(7,032)
(92,762)
117,730
(32,000)
(7,032)
There are no fixed terms of repayment.
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Edward Nicol Robson
Ian James Bruce
2019-05-23
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