Company Registration No. 02478838 (England and Wales)
BCM SCAFFOLDING SERVICES LIMITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2018
PAGES FOR FILING WITH REGISTRAR
BCM SCAFFOLDING SERVICES LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
BCM SCAFFOLDING SERVICES LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2018
31 October 2018
- 1 -
2018
2017
Notes
£
£
£
£
Fixed assets
Tangible assets
3
1,014,132
1,258,365
Investments
4
3
3
1,014,135
1,258,368
Current assets
Debtors
5
2,117,796
1,938,637
Cash at bank and in hand
1,800,534
903,472
3,918,330
2,842,109
Creditors: amounts falling due within one year
6
(585,614)
(591,942)
Net current assets
3,332,716
2,250,167
Total assets less current liabilities
4,346,851
3,508,535
Provisions for liabilities
(11,455)
-
Net assets
4,335,396
3,508,535
Capital and reserves
Called up share capital
7
90
90
Revaluation reserve
8
569,441
696,032
Profit and loss reserves
3,765,865
2,812,413
Total equity
4,335,396
3,508,535
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
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 7 March 2019 and are signed on its behalf by:
D Hayde
Director
Company Registration No. 02478838
BCM SCAFFOLDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2018
- 2 -
1
Accounting policies
Company information
BCM Scaffolding Services Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
PO Box 501, The Nexus Building, Broadway, Letchworth Garden City, Herts, SG6 9BL.
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. The principal accounting policies adopted are set out below.
1.2
Reporting period
These financial statements have been prepared for an extended period of 15 months to 31 October 201
8
.
The comparative figures represent a full year of trading.
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.
Revenue from contracts for the
hire of equipment
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.
1.4
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:
Plant and equipment
15% - 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
.
BCM SCAFFOLDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2018
1
Accounting policies
(Continued)
- 3 -
P
lant and machinery
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
plant
and
machinery
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.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible and intangible 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).
Plant and machinery is impaired annually at a rate of 15% of the net book value. The assets are revalued periodically when a full stock take is carried out, whereby movements in the revaluation reserve occur. An impairment loss is recognised immediately as a revaluation decrease. This policy is in line with revaluation model described in FRS 102 Section 17.
1.6
Cash at bank and in hand
Cash at bank and in hand
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.
BCM SCAFFOLDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2018
1
Accounting policies
(Continued)
- 4 -
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 direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
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. 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 directors consider it improbable that scaffolding assets will be disposed of in a manner that would give rise to a material impact on future current taxation. Consequently no deferred tax liability is provided in respect of timing differences that arise on this class of asset.
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.
BCM SCAFFOLDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2018
1
Accounting policies
(Continued)
- 5 -
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.
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to income 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 asset are consumed.
2
Employees
The average monthly number of persons (including directors) employed by the company during the period was 2 (2017 - 3).
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 August 2017
3,716,703
Additions
51,553
Disposals
(110,378)
Revaluation
(126,591)
At 31 October 2018
3,531,287
Depreciation and impairment
At 1 August 2017
2,458,338
Depreciation charged in the period
107,729
Eliminated in respect of disposals
(48,912)
At 31 October 2018
2,517,155
Carrying amount
At 31 October 2018
1,014,132
At 31 July 2017
1,258,365
BCM SCAFFOLDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2018
- 6 -
4
Fixed asset investments
2018
2017
£
£
Investments
3
3
5
Debtors
2018
2017
Amounts falling due within one year:
£
£
Trade debtors
473,639
444,115
Other debtors
1,644,157
1,494,522
2,117,796
1,938,637
6
Creditors: amounts falling due within one year
2018
2017
£
£
Trade creditors
211,715
150,601
Corporation tax
194,885
282,947
Other taxation and social security
36,461
83,907
Other creditors
142,553
74,487
585,614
591,942
7
Called up share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
90 Ordinary of £1 each
90
90
90
90
8
Revaluation reserve
2018
2017
£
£
At beginning of period
696,032
818,862
Revaluation decrease arising in the period
(126,591)
(122,830)
At end of period
569,441
696,032
The revaluation reserve records the surplus or deficit arising on the valuation of plant and machinery. Please see Accounting Policies note 1.5 for further details.
BCM SCAFFOLDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2018
- 7 -
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was James Price FCA.
The auditor was UHY Hacker Young (East) Limited.
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2018
2017
£
£
2,667
22,000
11
Events after the reporting date
On 7 November 2018 the share capital of the company was sold to Safe Rise Scaffolding Group Limited, a company controlled by D Hayde and A McLay. On this date, a resolution was passed to declare two interim dividends, satisfied by the transfer of non-cash assets, being the fixed asset investments and loans included within other debtors, which were present at the reporting date.
12
Related party transactions
The following amounts were outstanding at the reporting end date:
2018
Balance
Amounts owed by related parties
£
P Commane
24,648
Entities over which the entity has control, joint control or significant influence
989,092
2017
Balance
Amounts owed in previous period
£
Entities over which the entity has control, joint control or significant influence
960,475
13
Controlling party
Throughout the reporting period the ultimate controlling party was P Commane by virtue of his shareholding in the company.