Company Registration No. 00076344 (England and Wales)
PUGH DAVIES & COMPANY LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2020
PAGES FOR FILING WITH REGISTRAR
PUGH DAVIES & COMPANY LIMITED
COMPANY INFORMATION
Directors
Mr A J Joseph
Mr J M Joseph
Ms S C Joseph
Secretary
Mr I P Stoner
Company number
00076344
Registered office
1st Floor
Cloister House
Riverside, New Bailey Street
Manchester
M3 5FS
Auditor
Lopian Gross Barnett & Co
1st Floor, Cloister House
Riverside
New Bailey Street
Manchester
M3 5FS
Business address
1 Tabley Mews
Off Stamford Street
ALTRINCHAM
WA14 1DA
Bankers
National Westminster Bank plc
Spinningfields Square
182 Deansgate
Manchester
M3 3LY
PUGH DAVIES & COMPANY LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
PUGH DAVIES & COMPANY LIMITED
BALANCE SHEET
AS AT
30 APRIL 2020
30 April 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
3
202,998
212,419
Investments
4
211
20,211
203,209
232,630
Current assets
Debtors
5
3,719,232
2,934,586
Cash at bank and in hand
10,013
4,387
3,729,245
2,938,973
Creditors: amounts falling due within one year
6
(107,517)
(107,708)
Net current assets
3,621,728
2,831,265
Total assets less current liabilities
3,824,937
3,063,895
Capital and reserves
Called up share capital
7
138,401
138,401
Share premium account
14,723
14,723
Profit and loss reserves
3,671,813
2,910,771
Total equity
3,824,937
3,063,895
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 26 January 2021 and are signed on its behalf by:
Mr J M Joseph
Director
Company Registration No. 00076344
PUGH DAVIES & COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2020
- 2 -
1
Accounting policies
Company information
Pugh Davies & Company Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
1st Floor, Cloister House, Riverside, New Bailey Street, Manchester, M3 5FS.
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, modified to include the revaluation of freehold properties and 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 in respect of management fees charged to related companies. An amount of £867,000 (2019: £867,000) was charged to group undertakings.
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 Freehold
2% Straight line
Fixtures, fittings & equipment
25% - 33.33% Reducing balance
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
.
1.4
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
PUGH DAVIES & COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2020
1
Accounting policies
(Continued)
- 3 -
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
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). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
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.
1.7
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.
PUGH DAVIES & COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2020
1
Accounting policies
(Continued)
- 4 -
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, 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 transaction 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 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.
PUGH DAVIES & COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2020
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
5
5
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 May 2019
303,675
38,739
342,414
Additions
-
1,634
1,634
At 30 April 2020
303,675
40,373
344,048
Depreciation and impairment
At 1 May 2019
109,269
20,726
129,995
Depreciation charged in the year
6,074
4,981
11,055
At 30 April 2020
115,343
25,707
141,050
Carrying amount
At 30 April 2020
188,332
14,666
202,998
At 30 April 2019
194,406
18,013
212,419
PUGH DAVIES & COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2020
3
Tangible fixed assets
(Continued)
- 6 -
The fair value of the property has been arrived at on the basis of a valuation carried out by the directors who have extensive experience within the commercial property sector. The directors valuation is based on past valuations performed by professionally qualified experts, knowledge of the market and analysing yields. The company considered the previous year's valuation, the state of the market and the impact of COVID-19 to determine the fair value of the property. The directors believe that the previous year's valuation remained appropriate as at 30 April 2020. The directors note due the impact of COVID 19 there is an unavoidable uncertainty in relation to the valuation of the property.
4
Fixed asset investments
2020
2019
£
£
Shares in group undertakings and participating interests
211
20,211
The company sold its entire shareholding of 20,000 shares in Deynacourt Limited during the year for consideration of £1.
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 May 2019
20,211
Disposals
(20,000)
At 30 April 2020
211
Carrying amount
At 30 April 2020
211
At 30 April 2019
20,211
5
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
-
586
Amounts owed by group undertakings
3,669,693
2,894,479
Other debtors
49,539
39,521
3,719,232
2,934,586
PUGH DAVIES & COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2020
- 7 -
6
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
19,903
19,948
Corporation tax
35,150
39,351
Other taxation and social security
23,874
22,134
Other creditors
28,590
26,275
107,517
107,708
7
Called up share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
6,802 Ordinary shares of 50p each
3,401
3,401
3,401
3,401
Preference share capital
Issued and fully paid
150,000 Non-cumulative participating preference shares of 90p each
135,000
135,000
135,000
135,000
8
Related party transactions
There were no related party transactions outside the normal course of business.
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.
Emphasis of matter - valuation of investment properties
We draw your attention to the fixed asset note in the financial statements which describes the valuations determined by the directors in arriving at the fair values of its fixed assets as at 30 April 2020. Given that state of the market and taking into account any COVID-19 impact, there is material uncertainty in respect of any impact these factors may have on valuations. The directors remain confident that the 30 April 2020 valuations remain appropriate.
Our opinion is not modified in respect of this matter.
The senior statutory auditor was Jason Selig BA ACA CTA DChA.
The auditor was Lopian Gross Barnett & Co.
PUGH DAVIES & COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2020
9
Audit report information
(Continued)
- 8 -
10
Post balance sheet events and Covid-19
The directors have closely monitored the Government guidance in response to the Covid-19 Pandemic and have implemented measures in line with the Governmental guidelines. The directors have assessed the impact of Covid-19 on the company and conclude that there are no items resulting from the Covid-19 Pandemic which require disclosure at the balance sheet date.
2020-04-30
2019-05-01
false
08 February 2021
CCH Software
CCH Accounts Production 2020.200
No description of principal activity
This audit opinion is unqualified
Mr A J Joseph
Mr J M Joseph
Ms S C Joseph
Mr I P Stoner
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