Company Registration No. SC280329 (Scotland)
RICHARD THOMPSON AND SONS (PLUMBING AND HEATING) LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
PAGES FOR FILING WITH REGISTRAR
RICHARD THOMPSON AND SONS (PLUMBING AND HEATING) LTD
CONTENTS
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 7
RICHARD THOMPSON AND SONS (PLUMBING AND HEATING) LTD
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2021
31 March 2021
- 1 -
2021
2020
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
7
79,980
75,813
Current assets
Inventories
95,192
50,183
Trade and other receivables
8
68,754
48,240
Cash and cash equivalents
82,807
57,071
246,753
155,494
Current liabilities
9
(189,297)
(176,025)
Net current assets/(liabilities)
57,456
(20,531)
Total assets less current liabilities
137,436
55,282
Non-current liabilities
10
(45,000)
Provisions for liabilities
(8,741)
(7,142)
Net assets
83,695
48,140
Equity
Called up share capital
11
2
2
Retained earnings
83,693
48,138
Total equity
83,695
48,140
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 March 2021 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.
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.
RICHARD THOMPSON AND SONS (PLUMBING AND HEATING) LTD
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 MARCH 2021
31 March 2021
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 20 December 2021 and are signed on its behalf by:
Mr J Thompson
Director
Company Registration No. SC280329
RICHARD THOMPSON AND SONS (PLUMBING AND HEATING) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
- 3 -
1
Company Information
Richard Thompson and Sons (Plumbing and Heating) Ltd is a
private
company
limited by shares
incorporated in
Scotland
.
The registered office is
26a Seatown, Lossiemouth, Moray, IV31 6JJ.
2
Compliance with accounting standards
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.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
3
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
4
Accounting policies
4.1
Revenue
Revenue 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.
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.
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
.
4.2
Intangible fixed assets - goodwill
Goodwill is the difference between the amounts paid on acquisition of a business and the fair value of the separate net assets, It has been amortised to the profit and loss account in equal annual instalments over its estimated useful economical life of ten years as assessed by the director. Goodwill is fully amortised.
RICHARD THOMPSON AND SONS (PLUMBING AND HEATING) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
4
Accounting policies
(Continued)
- 4 -
4.3
Property, plant and equipment
Property, plant and equipment
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:
Plant and machinery
25% reducing balance
Workshop
10% straight line
Computer equipment
33% straight line
Motor vehicles
25% reducing balance
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
.
4.4
Inventories
Inventories 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 inventories to their present location and condition.
4.5
Basic 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 statement of financial position 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.
4.6
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
The charge for taxation takes into account taxation deferred as a result of timing differences between the treatment of certain items for taxation and accounting purposes. In general, deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. Deferred taxation is measured on a non-discounted basis at the tax rates that are expected to apply in the periods in which the timing differences reverse, based on tax rates and the law enacted or substantively enacted at the balance sheet date.
RICHARD THOMPSON AND SONS (PLUMBING AND HEATING) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
4
Accounting policies
(Continued)
- 5 -
4.7
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
non-current assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
4.8
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
4.9
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 statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
4.10
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.
4.11
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.
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
7
5
RICHARD THOMPSON AND SONS (PLUMBING AND HEATING) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 6 -
6
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2020 and 31 March 2021
20,000
Amortisation and impairment
At 1 April 2020 and 31 March 2021
20,000
Carrying amount
At 31 March 2021
At 31 March 2020
7
Property, plant and equipment
Plant and machinery etc
£
Cost
At 1 April 2020
109,705
Additions
24,361
Disposals
(8,843)
At 31 March 2021
125,223
Depreciation and impairment
At 1 April 2020
33,892
Depreciation charged in the year
19,641
Eliminated in respect of disposals
(8,290)
At 31 March 2021
45,243
Carrying amount
At 31 March 2021
79,980
At 31 March 2020
75,813
8
Trade and other receivables
2021
2020
Amounts falling due within one year:
£
£
Trade receivables
66,347
45,381
Corporation tax recoverable
1,212
1,212
Other receivables
1,195
1,647
68,754
48,240
RICHARD THOMPSON AND SONS (PLUMBING AND HEATING) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 7 -
9
Current liabilities
2021
2020
£
£
Bank loans
5,000
Trade payables
19,685
13,619
Corporation tax
8,207
1,471
Other taxation and social security
20,440
20,476
Other payables
135,965
140,459
189,297
176,025
Other payables include amounts due of £nil (2020- £4,382) under hire purchase agreements which are secured against the assets to which they relate.
10
Non-current liabilities
2021
2020
£
£
Bank loans and overdrafts
45,000
11
Called up share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
12
Related party transactions
As at 31 March 2020 the company owed one of the shareholders £134,542. During the year the company met expenditure of £112 on behalf of the shareholder and at the year end the company owed the shareholder £124,430. This loan is interest free and has no fixed terms of repayment.
During the year the company paid dividends totalling £2,000 (2020 - £12,000) to the director.