17
31/08/2020
2020-08-31
false
false
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No description of principal activities is disclosed
2019-09-01
Sage Accounts Production 2020 Update 1 - FRS102_2019
xbrli:pure
xbrli:shares
iso4217:GBP
02263403
2019-09-01
2020-08-31
02263403
2020-08-31
02263403
2019-08-31
02263403
2018-09-01
2019-08-31
02263403
2019-08-31
02263403
2018-08-31
02263403
core:LandBuildings
core:LongLeaseholdAssets
2019-09-01
2020-08-31
02263403
core:LandBuildings
core:ShortLeaseholdAssets
2019-09-01
2020-08-31
02263403
core:PlantMachinery
2019-09-01
2020-08-31
02263403
core:FurnitureFittingsToolsEquipment
2019-09-01
2020-08-31
02263403
core:MotorVehicles
2019-09-01
2020-08-31
02263403
bus:RegisteredOffice
2019-09-01
2020-08-31
02263403
bus:OrdinaryShareClass1
2019-09-01
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02263403
bus:LeadAgentIfApplicable
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02263403
bus:Director1
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02263403
bus:Director2
2019-09-01
2020-08-31
02263403
bus:CompanySecretary1
2019-09-01
2020-08-31
02263403
core:LandBuildings
core:OwnedOrFreeholdAssets
2019-08-31
02263403
core:LandBuildings
core:LongLeaseholdAssets
2019-08-31
02263403
core:LandBuildings
core:ShortLeaseholdAssets
2019-08-31
02263403
core:PlantMachinery
2019-08-31
02263403
core:FurnitureFittingsToolsEquipment
2019-08-31
02263403
core:MotorVehicles
2019-08-31
02263403
core:LandBuildings
core:OwnedOrFreeholdAssets
2020-08-31
02263403
core:LandBuildings
core:LongLeaseholdAssets
2020-08-31
02263403
core:LandBuildings
core:ShortLeaseholdAssets
2020-08-31
02263403
core:PlantMachinery
2020-08-31
02263403
core:FurnitureFittingsToolsEquipment
2020-08-31
02263403
core:MotorVehicles
2020-08-31
02263403
core:WithinOneYear
2020-08-31
02263403
core:WithinOneYear
2019-08-31
02263403
core:AfterOneYear
2020-08-31
02263403
core:AfterOneYear
2019-08-31
02263403
core:RetainedEarningsAccumulatedLosses
2018-09-01
2019-08-31
02263403
core:RetainedEarningsAccumulatedLosses
2019-09-01
2020-08-31
02263403
core:ShareCapital
2020-08-31
02263403
core:ShareCapital
2019-08-31
02263403
core:RetainedEarningsAccumulatedLosses
2020-08-31
02263403
core:RetainedEarningsAccumulatedLosses
2019-08-31
02263403
core:ShareCapital
2018-08-31
02263403
core:RetainedEarningsAccumulatedLosses
2018-08-31
02263403
bus:OrdinaryShareClass1
core:ShareCapital
2020-08-31
02263403
bus:OrdinaryShareClass1
core:ShareCapital
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02263403
core:AcceleratedTaxDepreciationDeferredTax
2020-08-31
02263403
core:AcceleratedTaxDepreciationDeferredTax
2019-08-31
02263403
core:TaxLossesCarry-forwardsDeferredTax
2020-08-31
02263403
core:TaxLossesCarry-forwardsDeferredTax
2019-08-31
02263403
core:LandBuildings
core:OwnedOrFreeholdAssets
2019-08-31
02263403
core:LandBuildings
core:LongLeaseholdAssets
2019-08-31
02263403
core:LandBuildings
core:ShortLeaseholdAssets
2019-08-31
02263403
core:PlantMachinery
2019-08-31
02263403
core:FurnitureFittingsToolsEquipment
2019-08-31
02263403
core:MotorVehicles
2019-08-31
02263403
core:DeferredTaxation
2019-08-31
02263403
core:DeferredTaxation
2020-08-31
02263403
core:DeferredTaxation
2019-09-01
2020-08-31
02263403
bus:SmallEntities
2019-09-01
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02263403
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2019-09-01
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02263403
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2019-09-01
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02263403
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02263403
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02263403
core:Associate1
2019-09-01
2020-08-31
02263403
core:Associate1
core:ManagementRechargesServices
2019-09-01
2020-08-31
02263403
core:Associate1
core:ManagementRechargesServices
2018-09-01
2019-08-31
02263403
core:Associate1
core:RentalExpenseTransactions
2019-09-01
2020-08-31
02263403
core:Associate1
core:RentalExpenseTransactions
2018-09-01
2019-08-31
02263403
core:Associate2
2019-09-01
2020-08-31
02263403
core:Associate2
core:RentalExpenseTransactions
2019-09-01
2020-08-31
02263403
core:Associate2
core:RentalExpenseTransactions
2018-09-01
2019-08-31
02263403
core:Associate1
2020-08-31
02263403
core:Associate1
2019-08-31
02263403
core:Associate2
2020-08-31
02263403
core:Associate2
2019-08-31
Company registration number:
02263403
Afan Construction Limited
Financial statements
31 August 2020
Afan Construction Limited
Contents
Directors and other information
Directors report
Independent auditor's report to the members
Statement of comprehensive income
Statement of financial position
Statement of changes in equity
Notes to the financial statements
Afan Construction Limited
Directors and other information
|
|
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Directors
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Mrs P M Evans
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Mr D W Evans
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Secretary
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Mrs P M Evans
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Company number
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02263403
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Registered office
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Unit 2 Cae Gwyn
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Glanyrafon Industrial Estate
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|
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Aberystwyth
|
|
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Ceredigion
|
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SY23 3JF
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|
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|
Business address
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Unit 2 Cae Gwyn
|
|
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Glanyrafon Industrial Estate
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Aberystwyth
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|
Ceredigion
|
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SY23 3JF
|
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Auditor
|
Davies Lewis Baker
|
|
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31 Bridge Street
|
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Aberystwyth
|
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Ceredigion
|
|
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SY23 1QB
|
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|
|
|
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Accountants
|
Davies Lewis Baker
|
|
|
31 Bridge Street
|
|
|
Aberystwyth
|
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Ceredigion
|
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|
SY23 1QB
|
|
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|
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Bankers
|
Lloyds Bank Plc
|
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Solicitors
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Alun Thomas & John
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Eastgate
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Aberystwyth
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Afan Construction Limited
Directors report
Year ended 31 August 2020
The directors present their report and the financial statements of the company for the year ended 31 August 2020.
Directors
The directors who served the company during the year were as follows:
|
Mrs P M Evans
|
Mr D W Evans
|
|
Directors responsibilities statement
The directors are responsible for preparing the directors 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 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 judgments and accounting estimates that are reasonable and prudent; and
-
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.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
-
so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
Small company provisions
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
This report was approved by the board of directors on
28 May 2021
and signed on behalf of the board by:
Mrs P M Evans
Director
Afan Construction Limited
Independent auditor's report to the members of
Afan Construction Limited
Year ended 31 August 2020
Opinion
We have audited the financial statements of Afan Construction Limited (the 'company') for the year ended 31 August 2020 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity 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 August 2020 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.
Basis for opinion
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 the provisions available for small entities, in the circumstances set out in note 14 to the financial statements, 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.
Other Information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 the audit:
-
the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the directors' report has been prepared in accordance with applicable legal requirements.
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 identified material misstatements in 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 the 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; or - the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the directors' report and from the requirement to prepare a strategic report.
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. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. we also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Use of our 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 auditors 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.
Mark Baker FCCA
(Senior Statutory Auditor)
For and on behalf of
Davies Lewis Baker
Chartered Certified Accountants and Statutory Auditor
31 Bridge Street
Aberystwyth
Ceredigion
SY23 1QB
28 May 2021
Afan Construction Limited
Statement of comprehensive income
Year ended 31 August 2020
|
|
|
|
2020
|
|
2019
|
|
|
|
|
Note
|
|
£
|
|
£
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
|
|
|
1,310,872
|
|
1,398,817
|
|
|
Cost of sales
|
|
|
|
(
1,229,113)
|
|
(
1,117,221)
|
|
|
|
|
|
|
_______
|
|
_______
|
|
|
Gross profit
|
|
|
|
81,759
|
|
281,596
|
|
|
|
|
|
|
|
|
|
|
|
Administrative expenses
|
|
|
|
(
264,039)
|
|
(
259,148)
|
|
|
Other operating income
|
|
|
|
92,784
|
|
-
|
|
|
|
|
|
|
_______
|
|
_______
|
|
|
Operating (loss)/profit
|
|
|
|
(
89,496)
|
|
22,448
|
|
|
|
|
|
|
|
|
|
|
|
Interest payable and similar expenses
|
|
|
|
(
7,278)
|
|
(
5,583)
|
|
|
(Loss)/profit before taxation
|
|
5
|
|
(
96,774)
|
|
16,865
|
|
|
|
|
|
|
|
|
|
|
|
Tax on (loss)/profit
|
|
|
|
15,965
|
|
(
8,306)
|
|
|
|
|
|
|
_______
|
|
_______
|
|
|
(Loss)/profit for the financial year and total comprehensive income
|
|
|
|
(
80,809)
|
|
8,559
|
|
|
|
|
|
|
_______
|
|
_______
|
|
|
|
|
|
|
|
|
|
|
|
All the activities of the company are from continuing operations.
Afan Construction Limited
Statement of financial position
31 August 2020
|
|
|
2020
|
|
|
|
2019
|
|
|
|
|
Note
|
£
|
|
£
|
|
£
|
|
£
|
|
|
|
|
|
|
|
|
|
|
Fixed assets
|
|
|
|
|
|
|
|
|
|
Tangible assets
|
|
6
|
733,111
|
|
|
|
753,734
|
|
|
|
|
|
_______
|
|
|
|
_______
|
|
|
|
|
|
|
|
733,111
|
|
|
|
753,734
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
Stocks
|
|
|
213,250
|
|
|
|
289,900
|
|
|
Debtors
|
|
7
|
596,573
|
|
|
|
544,448
|
|
|
Cash at bank and in hand
|
|
|
39,298
|
|
|
|
32,887
|
|
|
|
|
|
_______
|
|
|
|
_______
|
|
|
|
|
|
849,121
|
|
|
|
867,235
|
|
|
Creditors: amounts falling due
|
|
|
|
|
|
|
|
|
|
within one year
|
|
8
|
(
537,969)
|
|
|
|
(
482,163)
|
|
|
|
|
|
_______
|
|
|
|
_______
|
|
|
Net current assets
|
|
|
|
|
311,152
|
|
|
|
385,072
|
|
|
|
|
|
_______
|
|
|
|
_______
|
Total assets less current liabilities
|
|
|
|
|
1,044,263
|
|
|
|
1,138,806
|
|
|
|
|
|
|
|
|
|
|
Creditors: amounts falling due
|
|
|
|
|
|
|
|
|
|
after more than one year
|
|
9
|
|
|
(
110,152)
|
|
|
|
(
120,160)
|
|
|
|
|
|
|
|
|
|
|
Provisions for liabilities
|
|
10
|
|
|
(
46,765)
|
|
|
|
(
50,491)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_______
|
|
|
|
_______
|
Net assets
|
|
|
|
|
887,346
|
|
|
|
968,155
|
|
|
|
|
|
_______
|
|
|
|
_______
|
|
|
|
|
|
|
|
|
|
|
Capital and reserves
|
|
|
|
|
|
|
|
|
|
Called up share capital
|
|
12
|
|
|
100
|
|
|
|
100
|
Profit and loss account
|
|
|
|
|
887,246
|
|
|
|
968,055
|
|
|
|
|
|
_______
|
|
|
|
_______
|
Shareholders funds
|
|
|
|
|
887,346
|
|
|
|
968,155
|
|
|
|
|
|
_______
|
|
|
|
_______
|
|
|
|
|
|
|
|
|
|
|
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
These financial statements were approved by the
board of directors
and authorised for issue on
28 May 2021
, and are signed on behalf of the board by:
Mrs P M Evans
Mr D W Evans
Director
Director
Company registration number:
02263403
Afan Construction Limited
Statement of changes in equity
Year ended 31 August 2020
|
|
Called up share capital
|
|
Profit and loss account
|
Total
|
|
|
|
|
|
|
|
£
|
|
£
|
£
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 September 2018
|
|
100
|
|
959,496
|
959,596
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/profit for the year
|
|
|
|
8,559
|
8,559
|
|
|
|
|
|
|
|
_______
|
|
_______
|
_______
|
|
|
|
|
|
Total comprehensive income for the year
|
|
-
|
|
8,559
|
8,559
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_______
|
|
_______
|
_______
|
|
|
|
|
|
At 31 August 2019 and 1 September 2019
|
|
100
|
|
968,055
|
968,155
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/profit for the year
|
|
|
|
(
80,809)
|
(
80,809)
|
|
|
|
|
|
|
|
_______
|
|
_______
|
_______
|
|
|
|
|
|
Total comprehensive income for the year
|
|
-
|
|
(
80,809)
|
(
80,809)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_______
|
|
_______
|
_______
|
|
|
|
|
|
At 31 August 2020
|
|
100
|
|
887,246
|
887,346
|
|
|
|
|
|
|
|
_______
|
|
_______
|
_______
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Afan Construction Limited
Notes to the financial statements
Year ended 31 August 2020
1.
General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Unit 2 Cae Gwyn, Glanyrafon Industrial Estate, Aberystwyth, Ceredigion, SY23 3JF.
2.
Statement of compliance
These financial statements have been prepared in compliance with the provisions of FRS 102, Section 1A, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. The Triennial review 2017 amendments to the standard have been early adopted.
3.
Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
|
|
|
|
|
|
Long leasehold property
|
-
|
1 %
|
straight line
|
|
Short leasehold property
|
-
|
4 %
|
straight line
|
|
Plant and machinery
|
-
|
25 %
|
reducing balance
|
|
Fittings fixtures and equipment
|
-
|
20 %
|
straight line
|
|
Motor vehicles
|
-
|
25 %
|
reducing balance
|
|
|
|
|
|
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates. No depreciation is provided on freehold land and properties because the directors consider that the residual values will be higher than the orignial purchase cost.
Investment property
Investment property is measured initially at cost, which includes purchase price and any directly attributable expenditure. Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.Debt instruments are subsequently measured at amortised cost.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4.
Employee numbers
The average number of persons employed by the company during the year amounted to
17
(2019:
17
).
5.
Loss/profit before taxation
Loss/profit before taxation is stated after charging/(crediting):
|
|
|
|
2020
|
2019
|
|
|
|
|
£
|
£
|
|
Depreciation of tangible assets
|
|
|
86,615
|
63,711
|
|
Fees payable for the audit of the financial statements
|
|
|
3,100
|
2,800
|
|
|
|
|
_______
|
_______
|
|
|
|
|
|
|
6.
Tangible assets
|
|
Freehold property
|
Long leasehold property
|
Short leasehold property
|
Plant and machinery
|
Fixtures, fittings and equipment
|
Motor vehicles
|
Total
|
|
|
£
|
£
|
£
|
£
|
£
|
£
|
£
|
|
Cost
|
|
|
|
|
|
|
|
|
At 1 September 2019
|
408,885
|
43,082
|
115,868
|
765,534
|
25,805
|
83,877
|
1,443,051
|
|
Additions
|
-
|
-
|
-
|
66,139
|
-
|
-
|
66,139
|
|
Disposals
|
-
|
-
|
-
|
(
18,000)
|
-
|
-
|
(
18,000)
|
|
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
|
At 31 August 2020
|
408,885
|
43,082
|
115,868
|
813,673
|
25,805
|
83,877
|
1,491,190
|
|
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
|
Depreciation
|
|
|
|
|
|
|
|
|
At 1 September 2019
|
-
|
7,341
|
87,285
|
508,283
|
25,804
|
60,604
|
689,317
|
|
Charge for the year
|
-
|
446
|
4,574
|
75,777
|
-
|
5,818
|
86,615
|
|
Disposals
|
-
|
-
|
-
|
(
17,853)
|
-
|
-
|
(
17,853)
|
|
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
|
At 31 August 2020
|
-
|
7,787
|
91,859
|
566,207
|
25,804
|
66,422
|
758,079
|
|
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
|
Carrying amount
|
|
|
|
|
|
|
|
|
At 31 August 2020
|
408,885
|
35,295
|
24,009
|
247,466
|
1
|
17,455
|
733,111
|
|
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
|
At 31 August 2019
|
408,885
|
35,741
|
28,583
|
257,251
|
1
|
23,273
|
753,734
|
|
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
_______
|
|
|
|
|
|
|
|
|
|
Investment property
The company owns a freehold investment property which is included at its original cost of £240,688 which, in the opinion of the directors, equates to its approximate fair value. The company also owns a short leasehold investment property with a net book value of £24,009. The property is being amortised on a straight line basis over the remaining 5 years of the lease.
7.
Debtors
|
|
|
2020
|
2019
|
|
|
|
£
|
£
|
|
Trade debtors
|
|
481,615
|
477,177
|
|
Other debtors
|
|
114,958
|
67,271
|
|
|
|
_______
|
_______
|
|
|
|
596,573
|
544,448
|
|
|
|
_______
|
_______
|
|
|
|
|
|
8.
Creditors: amounts falling due within one year
|
|
|
2020
|
2019
|
|
|
|
£
|
£
|
|
Bank loans and overdrafts
|
|
8,242
|
12,307
|
|
Trade creditors
|
|
405,323
|
343,922
|
|
Social security and other taxes
|
|
10,387
|
12,717
|
|
Other creditors
|
|
114,017
|
113,217
|
|
|
|
_______
|
_______
|
|
|
|
537,969
|
482,163
|
|
|
|
_______
|
_______
|
|
|
|
|
|
9.
Creditors: amounts falling due after more than one year
|
|
|
2020
|
2019
|
|
|
|
£
|
£
|
|
Bank loans and overdrafts
|
|
53,622
|
55,880
|
|
Other creditors
|
|
56,530
|
64,280
|
|
|
|
_______
|
_______
|
|
|
|
110,152
|
120,160
|
|
|
|
_______
|
_______
|
|
|
|
|
|
The bank overdraft and loan is secured by a 1st Legal Charge over the company's freehold property and an unlimited debenture incorporating a fixed and floating charge.
Included within creditors: amounts falling due after more than one year is an amount of £ 4,065
(2019 £ 6,647 ) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.
The bank loan is repayable monthly at an interest rate of 4.041 per cent.
10.
Provisions
|
|
Deferred tax (note 11)
|
Total
|
|
|
|
|
|
£
|
£
|
|
|
|
|
At 1 September 2019
|
50,491
|
50,491
|
|
|
|
|
Unused amounts reversed
|
(
3,726)
|
(
3,726)
|
|
|
|
|
|
_______
|
_______
|
|
|
|
|
At 31 August 2020
|
46,765
|
46,765
|
|
|
|
|
|
_______
|
_______
|
|
|
|
|
|
|
|
|
|
|
11.
Deferred tax
The deferred tax included in the statement of financial position is as follows:
|
|
|
2020
|
2019
|
|
|
|
£
|
£
|
|
Included in provisions (note 10)
|
|
46,765
|
50,491
|
|
|
|
_______
|
_______
|
|
|
|
|
|
The deferred tax account consists of the tax effect of timing differences in respect of:
|
|
|
2020
|
2019
|
|
|
|
£
|
£
|
|
Accelerated capital allowances
|
|
47,831
|
51,079
|
|
Unused tax losses
|
|
(
1,066)
|
(
588)
|
|
|
|
_______
|
_______
|
|
|
|
46,765
|
50,491
|
|
|
|
_______
|
_______
|
|
|
|
|
|
12.
Called up share capital
Issued, called up and fully paid
|
|
|
2020
|
|
|
|
2019
|
|
|
|
|
|
No
|
|
£
|
|
No
|
|
£
|
|
Ordinary shares
shares of £
1.00 each
|
|
100
|
|
100
|
|
100
|
|
100
|
|
|
|
_______
|
|
_______
|
|
_______
|
|
_______
|
|
|
|
|
|
|
|
|
|
|
13.
Related party transactions
During the year the company entered into the following transactions with related parties:
|
|
Transaction value
|
|
Balance owed by/(owed to)
|
|
|
|
2020
|
2019
|
2020
|
2019
|
|
|
£
|
£
|
£
|
£
|
|
Afan Construction Services Limited
|
-
|
-
|
(
9,273)
|
(
54,873)
|
|
Management charges
|
16,000
|
16,000
|
-
|
-
|
|
Rent payable
|
(
4,000)
|
(
4,000)
|
-
|
-
|
|
Abba Loos Limited
|
-
|
-
|
39,265
|
116,228
|
|
Rent payable
|
(
24,000)
|
(
24,000)
|
-
|
-
|
|
|
_______
|
_______
|
_______
|
_______
|
|
|
|
|
|
|
Afan Construction Services Limited is wholly owned by the directors of
Afan Construction Limited
together with close family members. Abba Loos Limited is wholly owned by the directors of Afan Construction Limited
.
14.
Ethical standards
In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.
15.
Controlling party
The directors Mr DW Evans and Mrs PM Evans have a controlling interest in the company.