ER & RT Rackham Limited
Unaudited Financial Statements
For the year ended 31 March 2021
Pages for filing with registrar
Company Registration No. 00579459 (England and Wales)
ER & RT RACKHAM LIMITED
ER & RT Rackham Limited
COMPANY INFORMATION
Directors
Mr D E Rackham
Mrs T J Rackham
Secretary
Mr D E Rackham
Company number
00579459
Registered office
Deben Mills
Wickham Market
Woodbridge
Suffolk
IP13 0RG
Accountants
Churchgate Accountants Limited
18 Langton Place
Bury St Edmunds
Suffolk
IP33 1NE
ER & RT RACKHAM LIMITED
ER & RT Rackham Limited
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
ER & RT RACKHAM LIMITED
ER & RT Rackham Limited
BALANCE SHEET
AS AT 31 MARCH 2021
31 March 2021
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
3
192,388
176,699
Current assets
Stocks
72,849
59,557
Debtors
4
120,669
89,649
Cash at bank and in hand
433,782
551,549
627,300
700,755
Creditors: amounts falling due within one year
5
(286,809)
(296,523)
Net current assets
340,491
404,232
Total assets less current liabilities
532,879
580,931
Provisions for liabilities
(33,074)
(30,155)
Net assets
499,805
550,776
Capital and reserves
Called up share capital
6
1,625
1,625
Share premium account
2,500
2,500
Capital redemption reserve
4,875
4,875
Profit and loss reserves
490,805
541,776
Total equity
499,805
550,776
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 March 2021 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.
ER & RT RACKHAM LIMITED
ER & RT Rackham Limited
BALANCE SHEET (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 30 August 2021 and are signed on its behalf by:
Mr D E Rackham
Director
Company Registration No. 00579459
ER & RT RACKHAM LIMITED
ER & RT Rackham Limited
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2021
31 March 2021
- 3 -
1
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
14
13
2
Accounting policies
Company information
ER & RT Rackham Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Deben Mills, Wickham Market, Woodbridge, Suffolk, IP13 0RG.
2.1
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.
2.2
Going concern
The United Kingdom continues to suffer from the economic impact of the COVID-19 pandemic. However, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, and that the economic affects of the virus are not expected to have a long-term impact on the future of the company. The accounts have therefore been prepared on a going concern basis.
true
2.3
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 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.
2.4
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.
ER & RT RACKHAM LIMITED
ER & RT Rackham Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
2
Accounting policies
(Continued)
- 4 -
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
Period of lease
Leasehold improvements
2% - 20% straight line
Plant and machinery
15% - 25% reducing balance
Computer equipment
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
.
2.5
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.
2.6
Stocks
Stocks 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.
2.7
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.
2.8
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.
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.
ER & RT RACKHAM LIMITED
ER & RT Rackham Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
2
Accounting policies
(Continued)
- 5 -
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.
2.9
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.
2.10
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.
2.11
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.
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.
ER & RT RACKHAM LIMITED
ER & RT Rackham Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
2
Accounting policies
(Continued)
- 6 -
2.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2.13
Leases
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.
2.14
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.
3
Tangible fixed assets
Land and buildings Leasehold
Leasehold improvements
Plant and machinery
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2020
60,182
127,296
23,467
335,833
546,778
Additions
52,462
4,417
2,587
6,150
65,616
Disposals
(14,634)
(8,500)
(23,134)
At 31 March 2021
60,182
52,462
131,713
11,420
333,483
589,260
Depreciation and impairment
At 1 April 2020
54,753
100,093
20,321
194,912
370,078
Depreciation charged in the year
543
2,261
7,220
1,837
36,389
48,250
Eliminated in respect of disposals
(14,469)
(6,987)
(21,456)
At 31 March 2021
55,296
2,261
107,313
7,688
224,314
396,872
Carrying amount
At 31 March 2021
4,886
50,201
24,400
3,732
109,169
192,388
At 31 March 2020
5,429
27,203
3,146
140,921
176,699
4
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
63,127
63,475
Other debtors
57,542
26,174
120,669
89,649
ER & RT RACKHAM LIMITED
ER & RT Rackham Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
4
Debtors
(Continued)
- 7 -
5
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
214,014
195,692
Corporation tax
3,103
27,897
Other taxation and social security
14,118
13,954
Other creditors
55,574
58,980
286,809
296,523
6
Called up share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
415
813
415
813
Ordinary B shares of £1 each
414
812
414
812
Ordinary C shares of £1 each
796
-
796
-
1,625
1,625
1,625
1,625
On 15 February 2021 398 ordinary A shares and 398 ordinary B shares were reclassified as ordinary C shares.
7
Operating lease commitments
Lessee
The total lease commitments relate to property rent. At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2021
2020
£
£
420,000