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GROVES-RAINES ARCHITECTS LIMITED
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Company registration number SC152187
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FILING FINANCIAL STATEMENTS
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FOR THE YEAR ENDED 31 AUGUST 2019
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GROVES-RAINES ARCHITECTS LIMITED
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CONTENTS
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Statement of financial position
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Notes to the financial statements
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GROVES-RAINES ARCHITECTS LIMITED
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COMPANY INFORMATION
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AS Company Services Limited
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1
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GROVES-RAINES ARCHITECTS LIMITED
REGISTERED NUMBER:
SC152187
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STATEMENT OF FINANCIAL POSITION
AS AT
31 AUGUST 2019
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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Capital redemption reserve
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The directors consider that the company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
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.
The financial statements have been prepared in accordance with the provisions applicable to companies subject
to the small companies' regime and in accordance with the provisions of Section 1A 'Small Entities' of Financial
Reporting Standard 102.
2
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GROVES-RAINES ARCHITECTS LIMITED
REGISTERED NUMBER:
SC152187
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STATEMENT OF FINANCIAL POSITION
(CONTINUED)
AS AT
31 AUGUST 2019
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
As permitted by Section 444 of the Companies Act 2006, the directors have not delivered to the Registrar a copy
of the company’s Statement of Income and Retained Earnings for the year ended 31 August 2019.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
: by:
The notes on pages 4 to 15 form part of these financial statements.
3
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GROVES-RAINES ARCHITECTS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2019
These financial statements are presented in Pounds Sterling (GBP), as that is the currency in which the company's transactions are denominated. They comprise the financial statements of the company drawn up for the year ended 31 August 2019.
The continuing activities of Groves-Raines Architects Limited ('the company') is the provision of architectural services.
The company is a private company limited by shares and is incorporated in United Kingdom and registered in Scotland. Details of the registered office can be found on the company information page of these financial statements. The company's registered number is SC152187.
2.
Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with applicable law and United Kingdom Accounting Standards including Section 1A 'Small Entities' of Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice applicable to Small Entities).
The preparation of financial statements in compliance with Section 1A ‘Small Entities’ of FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company accounting policies.
The following principal accounting policies have been applied:
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 relevant information available to them, believe it appropriate to prepare the financial statements on a going concern basis.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙
the amount of revenue can be measured reliably;
∙
it is probable that the company will receive the consideration due under the contract;
∙
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙
the costs incurred and the costs to complete the contract can be measured reliably.
4
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GROVES-RAINES ARCHITECTS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2019
2.
Accounting policies (continued)
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Operating leases: the company as lessee
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Rentals paid under operating leases are charged to the Statement of comprehensive income on a straight line basis over the lease term.
Interest income is recognised in the Statement of comprehensive income using the effective interest method.
Finance costs are charged to the Statement of comprehensive income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in the Statement of comprehensive income in the year in which they are incurred.
Defined contribution pension plan
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.
The contributions are recognised as an expense in the Statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the company in independently administered funds.
5
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GROVES-RAINES ARCHITECTS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2019
2.
Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of comprehensive income, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of financial position date, except that:
∙
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
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Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
6
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GROVES-RAINES ARCHITECTS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2019
2.
Accounting policies (continued)
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Tangible fixed assets (continued)
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Freehold land and property consists mainly of listed historic buildings which are well maintained and have consistently increased in value since they were acquired. The Company operates from these buildings and certain areas are also let with rental income being received. In the opinion of the directors, in order for the financial statements to show a true and fair view of the state of affairs of the Company, depreciation should not be provided on the freehold land and property.
Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.
Depreciation is provided on the following basis:
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Freehold land and property
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of comprehensive income.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first outbasis. Work in progress and finished goods include labour and attributable overheads.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
7
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GROVES-RAINES ARCHITECTS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2019
2.
Accounting policies (continued)
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Statement of financial position date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the Statement of financial position date.
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Statement of comprehensive income in the year that the company becomes aware of the obligation, and are measured at the best estimate at the Statement of financial position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of financial position.
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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The average monthly number of employees, including directors, during the year was 33
(2018 -
30
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8
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GROVES-RAINES ARCHITECTS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2019
9
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GROVES-RAINES ARCHITECTS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
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FOR THE YEAR ENDED 31 AUGUST 2019
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Freehold land and property
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10
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GROVES-RAINES ARCHITECTS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2019
5.
Tangible fixed assets (continued)
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The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
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Prepayments and accrued income
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11
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GROVES-RAINES ARCHITECTS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2019
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Obligations under finance lease and hire purchase contracts
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Accruals and deferred income
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Santander UK PLC hold a floating charge over the general assets of the company and a legal security over the freehold property owned by the company to the exent of the company's indebtedness to the bank.
Net obligations under finance lease and hire purchase contracts are secured on the assets held under contract.
Secured creditors for year total £42,162 (
2018 - £36,009
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Creditors: Amounts falling due after more than one year
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Net obligations under finance leases and hire purchase contracts
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Santander UK PLC hold a floating charge over the general assets of the company and a legal security over the freehold property owned by the company to the exent of the company's indebtedness to the bank.
Net obligations under finance lease and hire purchase contracts are secured on the assets held under contract.
Secured creditors for year total £335,684 (
2018 - £360,167
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12
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GROVES-RAINES ARCHITECTS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2019
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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Amounts falling due 2-5 years
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13
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GROVES-RAINES ARCHITECTS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2019
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Charged to profit or loss
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The deferred taxation balance is made up as follows:
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Accelerated capital allowances
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Charged to profit or loss
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Allotted, called up and fully paid
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34,002
(2018 -
34,002
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Ordinary
shares of £
1.00
each
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0
(2018 -
32,760
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B
shares of £
1.00
each
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Capital redemption reserve
The capital redemption reserve records the nominal value of shares repurchased by the company.
Profit and loss account
The profit and loss account includes current and prior year retained profits and dividends declared and paid.
14
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GROVES-RAINES ARCHITECTS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2019
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 £15,822 (
2018 - £7,821
). Contributions totalling £nil (
2018 - £nil
) were payable to the fund at the balance sheet date and are included in creditors.
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Commitments under operating leases
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At 31 August 2019 the company had future minimum lease payments under non-cancellable operating leases as follows:
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Later than 1 year and not later than 5 years
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Transactions with directors
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Included within other debtors is £5,531 (
2018 - other creditors of £24,014
) due to Nicholas Groves-Raines, and Kristin Hannesdottir, directors of the company. The loan is interest free and repayable on demand.
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Related party transactions
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Included within other debtors is £308,244 (
2018 - £310,076
) due from NGRA (James Morrison) Limited which is a company with a director in common with Groves-Raines Architects Limited. The balance due from NGRA (James Morrison) Limited is interest free and is repayable on demand.
Also included in other debtors is a balance of £170,000 (
2018 - £nil
) due from Groves-Raines Architects Studios Ltd which is a company also owned by the directors. The balance represents an amount due of £200,000 in respect of the trade and certain assets being transferred to Groves-Raines Architects Studios Ltd on 31 August 2019, less a payment of £30,000 received towards the outstanding balance.
As at 31 August 2019, the balance of £159,011 due from Custom (Leith) Limited, a company with a director in common with Groves-Raines-Architects Limited, has been provided for in full and the amount included within other debtors is £nil (
2018 - £159,011
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Included within other creditors is £nil (
2018 - £1,225
) due to Gunnar Groves-Raines, director of the company. The loan is interest free and repayable on demand.
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15
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