Company Registration No. 01091652 (England and Wales)
ALVIS BROTHERS (LYE CROSS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2017
ALVIS BROTHERS (LYE CROSS) LIMITED
COMPANY INFORMATION
Directors
Mr J Alvis (Senior)
Mr J Alvis (Junior)
Mr P Alvis
Mr M Alvis
Secretary
Mrs P Alvis
Company number
01091652
Registered office
Lye Cross Farm
Redhill
Wrington
Bristol
BS40 5RH
Auditor
Lentells Limited
Ash House
Cook Way
Bindon Road
Taunton
Somerset
TA2 6BJ
Business address
Lye Cross Farm
Redhill
Wrington
Bristol
BS40 5RH
Bankers
HSBC Bank plc
30 High Street
Weston-Super-Mare
North Somerset
BS23 1JE
Solicitors
Bennetts
High Street
Wrington
Bristol
BS18 7QB
ALVIS BROTHERS (LYE CROSS) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 21
ALVIS BROTHERS (LYE CROSS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2017
- 1 -
The directors present the strategic report for the year ended 31 March 2017.
Fair review of the business
The Companies principal activity continued to be that of purchasing and reselling of milk. Income is also generated from agricultural properties which are let.
This year has seen a rise in the demand for customer ready dairy products which means that we have seen an increase in the need for milk to fulfil this.
Principal risks and uncertainties
Principle risks facing the company
Volatility in world commodity prices along with extremes in the weather continue to provide the greatest risks facing the company.
Mr P Alvis
Director
19 December 2017
ALVIS BROTHERS (LYE CROSS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2017
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2017.
Principal activities
The principal activity of the company is that of purchasing and reselling of milk. It also owns agricultural properties which are let.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr J Alvis (Senior)
Mr J Alvis (Junior)
Mr P Alvis
Mr M Alvis
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Auditor
In accordance with the company's articles, a resolution proposing that Lentells Limited be reappointed as auditor of the company will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr P Alvis
Director
19 December 2017
ALVIS BROTHERS (LYE CROSS) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2017
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
• select suitable accounting policies and then apply them consistently;
-
• make judgements and accounting estimates that are reasonable and prudent;
-
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
ALVIS BROTHERS (LYE CROSS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ALVIS BROTHERS (LYE CROSS) LIMITED
- 4 -
Opinion
We have audited the financial statements of Alvis Brothers (Lye Cross) Limited
(the 'company')
for the year ended 31 March 2017 which comprise the Profit And Loss Account, the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
• give a true and fair view of the state of the company's affairs as at 31 March 2017 and of its loss for the year then ended;
-
• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
• have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the
financial statements
does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
ALVIS BROTHERS (LYE CROSS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALVIS BROTHERS (LYE CROSS) LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the Strategic Report and the Directors' Report
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
• the financial statements are not in agreement with the accounting records and returns; or
-
• certain disclosures of directors' remuneration specified by law are not made; or
-
• we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
ALVIS BROTHERS (LYE CROSS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALVIS BROTHERS (LYE CROSS) LIMITED
- 6 -
P A Stallard FCA (Senior Statutory Auditor)
for and on behalf of Lentells Limited
19 December 2017
Chartered Certified Accountants
Statutory Auditors
Ash House
Cook Way
Bindon Road
Taunton
Somerset
TA2 6BJ
ALVIS BROTHERS (LYE CROSS) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2017
- 7 -
2017
2016
Notes
£
£
Turnover
3
10,337,902
10,567,178
Cost of sales
(10,336,973)
(10,560,604)
Gross profit
929
6,574
Administrative expenses
(44,599)
(51,641)
Other operating income
43,202
43,183
Loss before taxation
(468)
(1,884)
Tax on loss
5
-
-
Loss for the financial year
(468)
(1,884)
The Profit And Loss Account has been prepared on the basis that all operations are continuing operations.
ALVIS BROTHERS (LYE CROSS) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2017
- 8 -
2017
2016
£
£
Loss for the year
(468)
(1,884)
Other comprehensive income
Tax relating to other comprehensive income
28,557
-
Total comprehensive income for the year
28,089
(1,884)
ALVIS BROTHERS (LYE CROSS) LIMITED
BALANCE SHEET
AS AT
31 MARCH 2017
31 March 2017
- 9 -
2017
2016
Notes
£
£
£
£
Fixed assets
Tangible assets
6
3,809,582
3,809,582
Current assets
Debtors
8
2,463,962
2,389,833
Creditors: amounts falling due within one year
9
(939,156)
(864,559)
Net current assets
1,524,806
1,525,274
Total assets less current liabilities
5,334,388
5,334,856
Provisions for liabilities
11
(308,904)
(337,461)
Net assets
5,025,484
4,997,395
Capital and reserves
Called up share capital
13
270
270
Revaluation reserve
3,265,151
3,236,594
Capital redemption reserve
30
30
Profit and loss reserves
1,760,033
1,760,501
Total equity
5,025,484
4,997,395
The financial statements were approved by the board of directors and authorised for issue on 19 December 2017 and are signed on its behalf by:
Mr P Alvis
Director
Company Registration No. 01091652
ALVIS BROTHERS (LYE CROSS) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2017
- 10 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 April 2015
270
3,236,594
30
1,762,385
4,999,279
Year ended 31 March 2016:
Loss and total comprehensive income for the year
-
-
-
(1,884)
(1,884)
Balance at 31 March 2016
270
3,236,594
30
1,760,501
4,997,395
Year ended 31 March 2017:
Loss for the year
-
-
-
(468)
(468)
Other comprehensive income:
Tax relating to other comprehensive income
-
28,557
-
-
28,557
Total comprehensive income for the year
-
28,557
-
(468)
28,089
Balance at 31 March 2017
270
3,265,151
30
1,760,033
5,025,484
ALVIS BROTHERS (LYE CROSS) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2017
- 11 -
2017
2016
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
16
(40,956)
(18,777)
Net cash used in investing activities
-
-
Net cash used in financing activities
-
-
Net decrease in cash and cash equivalents
(40,956)
(18,777)
Cash and cash equivalents at beginning of year
(129,917)
(111,140)
Cash and cash equivalents at end of year
(170,873)
(129,917)
Relating to:
Bank overdrafts included in creditors payable within one year
(170,873)
(129,917)
ALVIS BROTHERS (LYE CROSS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2017
- 12 -
1
Accounting policies
Company information
Alvis Brothers (Lye Cross) Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Lye Cross Farm, Redhill, Wrington, Bristol, BS40 5RH.
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.
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
Going concern
A
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
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 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.
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:
Freehold land and buildings
The company does not depreciate its freehold land and buildings, as the majority of these assets comprise agricultural land with a useable life exceeding 50 years.
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
.
1.5
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.
ALVIS BROTHERS (LYE CROSS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
1
Accounting policies
(Continued)
- 13 -
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.
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
ALVIS BROTHERS (LYE CROSS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
Other financial liabilities
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
ALVIS BROTHERS (LYE CROSS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
1
Accounting policies
(Continued)
- 15 -
1.8
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.
1.9
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are 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.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2017
2016
£
£
Turnover analysed by class of business
Milk sales
10,337,902
10,567,178
ALVIS BROTHERS (LYE CROSS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
3
Turnover and other revenue
(Continued)
- 16 -
2017
2016
£
£
Turnover analysed by geographical market
UK
10,337,902
10,567,178
4
Operating loss
2017
2016
Operating loss for the year is stated after charging:
£
£
Cost of stocks recognised as an expense
10,336,973
10,560,604
5
Taxation
The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2017
2016
£
£
Loss before taxation
(468)
(1,884)
Expected tax credit based on the standard rate of corporation tax in the UK of 20.00% (2016: 20.00%)
(94)
(377)
Unutilised tax losses carried forward
94
377
Taxation charge for the year
-
-
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2017
2016
£
£
Deferred tax arising on:
Revaluation of property
(28,557)
-
ALVIS BROTHERS (LYE CROSS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
- 17 -
6
Tangible fixed assets
Freehold land and buildings
£
Cost or valuation
At 1 April 2016 and 31 March 2017
3,809,582
Depreciation and impairment
At 1 April 2016 and 31 March 2017
-
Carrying amount
At 31 March 2017
3,809,582
At 31 March 2016
3,809,582
Upon transition to FRS 102 l
and and buildings with a carrying amount of £235,527 were revalued
based on market values at the transition date of 1 April 2014. The valuations were provided by
independent
professional
valuers not connected with the company
. The market value is now deemed cost and a revaluation policy has not been adopted.
If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
2017
2016
£
£
Cost
235,527
235,527
Accumulated depreciation
-
-
Carrying value
235,527
235,527
7
Financial instruments
2017
2016
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
2,463,962
2,389,833
Carrying amount of financial liabilities
Measured at amortised cost
939,156
864,559
8
Debtors
2017
2016
Amounts falling due within one year:
£
£
Other debtors
2,463,962
2,389,833
ALVIS BROTHERS (LYE CROSS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
- 18 -
9
Creditors: amounts falling due within one year
2017
2016
Notes
£
£
Bank loans and overdrafts
10
170,873
129,917
Trade creditors
755,988
722,347
Other creditors
12,295
12,295
939,156
864,559
All creditors are repayable on demand based on normal credit terms.
10
Loans and overdrafts
2017
2016
£
£
Bank overdrafts
170,873
129,917
Payable within one year
170,873
129,917
The bank overdraft is secured by fixed and floating charges over the assets of the company. The overdraft facility is of a group nature with Alvis Brothers Limited.
11
Provisions for liabilities
2017
2016
Notes
£
£
Deferred tax liabilities
12
308,904
337,461
12
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2017
2016
Balances:
£
£
Revaluations
308,904
337,461
ALVIS BROTHERS (LYE CROSS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
12
Deferred taxation
(Continued)
- 19 -
2017
Movements in the year:
£
Liability at 1 April 2016
337,461
Credit to other comprehensive income
(28,557)
Liability at 31 March 2017
308,904
The deferred tax liability set out above is expected to reverse upon the sale of the freehold land and property and arises from the revaluation of these assets.
Deferred tax is not recognised in respect of tax losses of £36,154 (2016: £35,686) as it is not probable that they will be recovered against the reversal of deferred tax liabilities or future taxable profits.
13
Share capital
2017
2016
£
£
Ordinary share capital
Issued and fully paid
270 Ordinary shares of £1 each
270
270
270
270
The ordinary share capital of the company holds full voting rights and entitles the holder to capital and dividend distribution.
14
Financial commitments, guarantees and contingent liabilities
The bank security described in note 10 covers a group composite overdraft facility. At 31 March 2017 the total group overdraft was £670,554 (2016: £5,779,844).
There were no other contingent liabilities at 31 March 2017.
15
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sale of goods
Purchase of goods
2017
2016
2017
2016
£
£
£
£
Company under common control
10,337,902
10,567,178
1,482,416
1,960,394
ALVIS BROTHERS (LYE CROSS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
15
Related party transactions
(Continued)
- 20 -
Rents received
Management charges
2017
2016
2017
2016
£
£
£
£
Company under common control
42,492
42,492
18,000
24,000
The related audit costs of Alvis Brothers (Lye Cross) Limited are dealt with by the company under common control.
The following amounts were outstanding at the reporting end date:
2017
2016
Amounts owed to related parties
£
£
Key management personnel
12,295
12,295
The balance owed to the directors by the company is provided interest free and is repayable on demand. The balance is shown within 'Other creditors'.
The following amounts were outstanding at the reporting end date:
2017
Balance
Amounts owed by related parties
£
Company under common control
2,463,962
2016
Balance
Amounts owed in previous period
£
Company under common control
2,389,833
The amount owing to the company under common control is interest free and repayable on demand. The balance is shown within 'Other debtors'.
No guarantees have been given or received,
ALVIS BROTHERS (LYE CROSS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
- 21 -
16
Cash generated from operations
2017
2016
£
£
Loss for the year after tax
(468)
(1,884)
Movements in working capital:
(Increase) in debtors
(74,129)
(171,577)
Increase in creditors
33,641
154,684
Cash absorbed by operations
(40,956)
(18,777)
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