Company Registration No. 03174603 (England and Wales)
CT & S (JOINERY) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2021
31 December 2021
PAGES FOR FILING WITH REGISTRAR
CT & S (JOINERY) LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
CT & S (JOINERY) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 1 -
2021
2020
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
4
76,176
57,672
Current assets
Stocks
25,286
20,241
Debtors
5
119,305
310,591
Cash at bank and in hand
2,779
147,370
330,832
Creditors: amounts falling due within one year
6
(726,292)
(445,319)
Net current liabilities
(578,922)
(114,487)
Total assets less current liabilities
(502,746)
(56,815)
Provisions for liabilities
(11,200)
(11,200)
Net liabilities
(513,946)
(68,015)
Capital and reserves
Called up share capital
1,000
1,000
Profit and loss reserves
(514,946)
(69,015)
Total equity
(513,946)
(68,015)
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 5 December 2022 and are signed on its behalf by:
MJ Tavener
Director
Company Registration No. 03174603
CT & S (JOINERY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
1
Accounting policies
Company information
CT & S (Joinery) Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
188 Iverson Road, West Hampstead, London, NW6 2HL.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
These financial statements are prepared on the going concern basis. The director has a reasonable expectation that the company will continue in operational existence for the foreseeable future, as there is an expectation that the company will be able to trade profitably going forward and that the group will continue to support this company. However, the director is aware of certain material uncertainties which may cause doubt on the company's ability to continue as a going concern. The material uncertainties arise from sustained period of loss making and the current negative reserves position.
1.3
Turnover
Turnover
represents amounts
receivable for goods and services net of VAT and
trade discounts
.
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:
Woodworking equipment
12.5% on cost
Computer equipment
25% on cost
Motor vehicles
25% on cost
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
.
CT & S (JOINERY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 3 -
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition
as follows:
Raw materials - Purchase cost on a "first in first out" basis.
Work in progress - Profits are recognised on short term contracts as the contract progresses, the un-invoiced value of the work in progress at the year end is stated within the turnover and trade debtors figure within the accounts.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
CT & S (JOINERY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 4 -
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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
CT & S (JOINERY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 5 -
1.12
Retirement benefits
The pension costs charged in the financial statements represent the contributions payable by the company during the year.
1.13
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
16
18
CT & S (JOINERY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 6 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2021
227,323
Additions
47,280
Disposals
(21,122)
At 31 December 2021
253,481
Depreciation and impairment
At 1 January 2021
169,651
Depreciation charged in the year
28,776
Eliminated in respect of disposals
(21,122)
At 31 December 2021
177,305
Carrying amount
At 31 December 2021
76,176
At 31 December 2020
57,672
5
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
109,458
264,234
Other debtors
9,847
46,357
119,305
310,591
6
Creditors: amounts falling due within one year
2021
2020
£
£
Bank loans and overdrafts
38,432
Trade creditors
61,308
69,940
Amounts owed to group undertakings
612,728
289,535
Taxation and social security
18,735
33,566
Other creditors
33,521
13,846
726,292
445,319
CT & S (JOINERY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 7 -
7
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified. The auditor's report made reference to the material uncertainty relating to going concern which is disclosed in note 1.2 to these financial statements as follows;
In forming our opinion on the financial statements, we have considered the adequacy of the disclosures made in note 1.2 to the financial statements concerning the company's ability to continue as a going concern. During the year to 31 December 2021 the company made an overall loss of £445,931 and its reserve are currently in a deficit position of £514,946.
The company is reliant on the continuing support of group companies. The group companies have indicated that they will continue to support the business and we have no reason to believe that they have inadequate resources to do so for the next twelve months. However, due to the trading position of the business there remains a material uncertainty over the company's ability to continue to trade as a going concern.
Senior Statutory Auditor:
Michael Breame
Statutory Auditor:
Rickard Luckin Limited
8
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2021
2020
£
£
49,508
49,508
9
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
During the year the company entered into the following transactions with related parties:
The company has taken advantage of the exemption available in accordance with Section 1A of FRS 102 whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the Group.
At the balance sheet date the company was owed £618,710 (2020: £237,975) by a fellow subsidiary. At the balance sheet date the company owed £5,982 (2020: £1,560) to a fellow subsidiary.
10
Parent company
For the current and prior year the ultimate parent company is CT & S Properties Limited, a company registered in England and Wales. The registered office is 188 Iverson Road, West Hampstead, London, NW6 2HL. CT & S Properties Limited prepare group financial statements and copies can be obtained from the Registrar of Companies.
CT & S (JOINERY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 8 -
11
Prior period adjustment
Reconciliation of changes in equity
1 January
31 December
2020
2020
£
£
Adjustments to prior year
-
(88,378)
Equity as previously reported
67,516
20,363
Equity as adjusted
67,516
(68,015)
Analysis of the effect upon equity
Profit and loss reserves
-
(88,378)
Reconciliation of changes in loss for the previous financial period
2020
£
Adjustments to prior year
(88,378)
Loss as previously reported
(47,153)
Loss as adjusted
(135,531)
Notes to reconciliation
The company has identified an error in the prior period Work In Progress calculations which resulted in an overstatement of Work In Progress as at 31 December 2020. The amount in question is material and as such a prior period adjustment has been included in these financial statements, the impact of which can be seen from the detail above.