Care Afloat Limited
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Notes to the Accounts |
for the year ended 31 March 2017
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the rendering of services in respect of placements. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
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Freehold property |
over 50 years |
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Boats |
10% straight line method |
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Fixtures, fittings and vehicles |
25% reducing balance method |
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Investments |
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Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account.
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only 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 and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate.
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2 |
Employees |
2017 |
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2016 |
Number |
Number |
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Average number of persons employed by the company |
88 |
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79 |
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3 |
Tangible fixed assets |
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Land and buildings |
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Investment Property |
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Plant & Machinery, Boats & Motor vehicles |
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Total |
£ |
£ |
£ |
£ |
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Cost |
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At 1 April 2016 |
453,690 |
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67,500 |
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244,831 |
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766,021 |
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Additions |
- |
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- |
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5,104 |
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5,104 |
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Disposals |
(453,690) |
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(67,500) |
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(132,225) |
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(653,415) |
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At 31 March 2017 |
- |
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- |
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117,710 |
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117,710 |
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Depreciation |
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At 1 April 2016 |
107,278 |
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- |
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113,565 |
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220,843 |
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Charge for the year |
6,810 |
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21,579 |
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28,389 |
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On disposals |
(114,088) |
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- |
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(64,576) |
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(178,664) |
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At 31 March 2017 |
- |
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- |
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70,568 |
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70,568 |
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Net book value |
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At 31 March 2017 |
- |
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- |
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47,142 |
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47,142 |
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At 31 March 2016 |
346,412 |
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67,500 |
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131,266 |
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545,178 |
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Freehold land and buildings: |
2017 |
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2016 |
£ |
£ |
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Historical cost |
- |
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134,531 |
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Cumulative depreciation based on historical cost |
- |
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82,961 |
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- |
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51,570 |
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The company's investment property was revalued in 2009 by John Ryder (Chartered Surveyor) on an existing use, open market value basis and the company's boats were revalued on 31st March 2010 on an open market value basis by the director. The investment property, boats and land and buildings were transfered to the holding company during the year at their respective carrying values less any accumulated depreciation. |
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4 |
Investments |
Investments in |
subsidiary |
undertakings |
£ |
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Cost |
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At 1 April 2016 |
31,000 |
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Disposals |
(31,000) |
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At 31 March 2017 |
- |
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The Company's investment in its wholly owned subsidiary, Thunderbolt Mobile Limited (incorporated in England and Wales), was transferred at its carrying value to the ultimate holding company during the year. |
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5 |
Debtors |
2017 |
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2016 |
£ |
£ |
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Trade debtors |
289,542 |
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343,078 |
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Other debtors |
26,969 |
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21,262 |
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316,511 |
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364,340 |
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6 |
Creditors: amounts falling due within one year |
2017 |
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2016 |
£ |
£ |
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Bank loans and overdrafts |
10,580 |
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21,171 |
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Trade creditors |
88,981 |
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86,584 |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
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3,330 |
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- |
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Taxation and social security costs |
60,518 |
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48,703 |
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Other creditors |
63,371 |
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67,714 |
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226,780 |
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224,172 |
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7 |
Creditors: amounts falling due after one year |
2017 |
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2016 |
£ |
£ |
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Bank loans |
- |
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51,667 |
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8 |
Loans |
2017 |
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2016 |
£ |
£ |
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Creditors include: |
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Instalments falling due for payment after more than five years |
- |
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31,889 |
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Secured bank loans |
10,580 |
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73,838 |
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The company made early repayment of all its property loans during the period and the security held on respect of these was cancelled. At the reporting date only one loan remained outstanding which was secured by a fixed and floating charge on the company's assets and this loan has subsequently been repaid.
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9 |
Revaluation reserve |
2017 |
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2016 |
£ |
£ |
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At 1 April 2016 |
67,681 |
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74,606 |
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Movement in year |
(67,681) |
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(6,925) |
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At 31 March 2017 |
- |
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67,681 |
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10 |
Pension commitments |
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The company operates a defined contribution pension scheme together with a workplace pension scheme in accordance with government requirements. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of both schemes. At the balance sheet date contrubutions totalling £1,868 were payable to the schemes (2016 - £2,560) |
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11 |
Other financial commitments |
2017 |
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2016 |
£ |
£ |
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Total future minimum payments under non-cancellable operating leases |
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49,622 |
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68,512 |
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12 |
Related party transactions |
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During the period the company made an in specie dividend payment of £521,000 to its holding company. The company's director, D Curran, who is also the ultimate controlling party, received a salary of £32,350 during the year and made a short term, interest free loan of £16,000 to the company. At the balance sheet date the company was indebted to Mr Curran in the sum of £17,634. The company also paid rent to Mr Curran in respect of a property used for trading purposes of £6,600 (2016 £6,600).
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13 |
Controlling party |
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The company is a wholly owned subsidiary of Care Afloat Holdings Limited, a company incorporated in England and Wales, The ultimate controlling party is the director, Mr D Curran, on the basis the he owns the entire issued share capital of the holding company, Care Afloat Holdings Limited.
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14 |
Other information |
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Care Afloat Limited is a private company limited by shares and incorporated in England and Wales. Its registered office is: |
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158-160 Birkrig |
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Digmoor |
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Skelmersdale |
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Lancashire |
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WN8 9HP |