Company Registration No. 04192823 (England and Wales)
THE GUILD OF CONSTRUCTION WORKERS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2020
THE GUILD OF CONSTRUCTION WORKERS LIMITED
COMPANY INFORMATION
Director
D S Reynolds
Company number
04192823
Registered office
Fifth Floor
79 College Road
Harrow
Middlesex
HA1 1BD
Auditors
Gerald Edelman
73 Cornhill
London
EC3V 3QQ
THE GUILD OF CONSTRUCTION WORKERS LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditors' report
4 - 5
Statement of comprehensive income
6
Balance sheet
7
Statement of changes in equity
8
Notes to the financial statements
9 - 16
THE GUILD OF CONSTRUCTION WORKERS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2020
- 1 -
The director presents the strategic report for the year ended 30 April 2020.
Fair Review of the Business
The director considers the retention and growth of
the company's
customer base to be a key performance indicator and that the continued growth has been achieved by delivering a service-orientated solution, which also focuses heavily on compliance.
Turnover for the year increased by 2.78% (2019:
1.
49% decrease) and the gross profit margin decreased to 1
.
61% from 2
.
06% in 2019. Profit on ordinary activities before tax for the year was £2.21m (2019: £
2.65
m) and at the year-end shareholders' funds total
l
ed £0.39m (2019: £
0.71
m).
D
uring the year overhead costs, including staff salaries, were mainly met by the company’s fellow subsidiary, CWG Services Limited and then cross-charged by way of management fees to other members of the group.
Principal Risks and Uncertainties
The majority of the company's creditors relate to trade creditors,
taxes payable and other creditors
, which are settled on a monthly or quarterly basis as they fall due. The company maintains sufficient cash balances to settle these on a timely basis.
The company has a wide spread of customers and maintains strong credit control procedures; consequently the director considers the risk of bad debts to be low.
The company is cash generative, is financed entirely by equity and does not rely on external borrowing. As a result the director considers there to be limited risk associated with financing and exposure to changes in interest rates.
Risk of the COVID-19 pandemic
In light of the COVID-19 pandemic throughout the UK and the rest of the world, and the likely expected level of economic disruption that it will cause, the director has considered the impact this will have on the company's future prospects.
The company's revenue and operating profit is derived from the provision of services to the companies operating in the UK.
The
latest GDP figures from the Office of National Statistics (ONS) show
that the level of activity in the sector in which the company operates is still below that of the pre-pandemic period.
The company's experience falls largely in line with the
sector in which it operates.
However, since the year end activity levels
are gradually returning to 2019 levels
. In addition, despite the COVID-19 crisis, the
company
continued its ongoing relationships with all of its clients.
At the close of the 2020 financial year, the company held a significant amount of cash amounting to £3.67m and a positive net assets position.
As
the crisis continues to develop during 2020/21, the
company
will continue to assess and adapt to meet the challenge.
D S Reynolds
Director
29 January 2021
THE GUILD OF CONSTRUCTION WORKERS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 APRIL 2020
- 2 -
The director presents his annual report and financial statements for the year ended 30 April 2020.
Principal activities
The principal activity of the company continued to be that of
offering engagement and compliance services.
Review of the business
The business review, future developments and the principal risks and uncertainties of the company are set out in the strategic report.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
D S Reynolds
Results and dividends
The results for the year are set out on page 6.
Ordinary dividends were paid during the year amounting to £2,109,342 (2019: £
1,504,366
).
Auditors
The auditors, Gerald Edelman, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of director's responsibilities
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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. He is 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.
Statement of disclosure to auditors
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
auditors are
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 auditors are
aware of that information.
THE GUILD OF CONSTRUCTION WORKERS LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2020
- 3 -
Going concern
The financial statements have been prepared on the going concern basis, which the director believes to be appropriate for the following reasons.
Having reviewed the company’s financial forecasts and expected future cash flows, the director has a reasonable expectation that the company has adequate resources available to it in order continue in operational existence for the foreseeable future, a period of not less than 12 months from the date of approval of these financial statements.
Based on the considerations set out above and having regard to the matter set out in note 16 and the expected effects of the COVID-19 global pandemic, as set out in the Strategic Report, the director believes that it remains appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate
.
On behalf of the board
D S Reynolds
Director
29 January 2021
THE GUILD OF CONSTRUCTION WORKERS LIMITED
INDEPENDENT AUDITORS' REPORT
TO THE MEMBER OF THE GUILD OF CONSTRUCTION WORKERS LIMITED
- 4 -
Opinion
We have audited the financial statements of The Guild of Construction Workers Limited (the 'company') for the year ended 30 April 2020
,
which comprise the statement of comprehensive income, the balance sheet, the 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 30 April 2020 and of its profit 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
Auditors
'
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 director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the director has 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 director is responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditors
'
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 director's r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
THE GUILD OF CONSTRUCTION WORKERS LIMITED
INDEPENDENT AUDITORS' REPORT
TO THE MEMBER OF THE GUILD OF CONSTRUCTION WORKERS 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 director's
r
eport
.
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 director's remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's
r
esponsibilities
s
tatement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Auditors' 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 auditors
'
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 auditors
'
report.
This report is made solely to the company's member 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 member those matters we are required to state to him 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 member for our audit work, for this report, or for the opinions we have formed.
Carl Lundberg ACA (Senior Statutory Auditor)
for and on behalf of Gerald Edelman
29 January 2021
Chartered Accountants &
Statutory Auditor
73 Cornhill
London
EC3V 3QQ
THE GUILD OF CONSTRUCTION WORKERS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2020
- 6 -
2020
2019
Notes
£
£
Turnover
3
259,097,413
252,096,671
Cost of sales
(254,934,318)
(246,893,731)
Gross profit
4,163,095
5,202,940
Administrative expenses
(1,962,367)
(2,583,004)
Operating profit
4
2,200,728
2,619,936
Interest receivable and similar income
7
11,908
28,269
Profit before taxation
2,212,636
2,648,205
Tax on profit
8
(420,288)
(510,389)
Profit for the financial year
1,792,348
2,137,816
Other comprehensive income
-
-
Total comprehensive income for the year
1,792,348
2,137,816
The profit and loss account has been prepared on the basis that all operations are continuing operations.
THE GUILD OF CONSTRUCTION WORKERS LIMITED
BALANCE SHEET
AS AT
30 APRIL 2020
30 April 2020
- 7 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
10
349,155
372,210
Current assets
Debtors
11
927,262
2,637,988
Cash at bank and in hand
3,676,216
2,675,442
4,603,478
5,313,430
Creditors: amounts falling due within one year
12
(4,558,202)
(4,974,215)
Net current assets
45,276
339,215
Total assets less current liabilities
394,431
711,425
Capital and reserves
Called up share capital
13
400
400
Profit and loss reserves
394,031
711,025
Total equity
394,431
711,425
The financial statements were approved and signed by the director and authorised for issue on 29 January 2021
D S Reynolds
Director
Company Registration No. 04192823
THE GUILD OF CONSTRUCTION WORKERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2020
- 8 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2018
400
77,575
77,975
Year ended 30 April 2019:
Profit and total comprehensive income for the year
-
2,137,816
2,137,816
Dividends
9
-
(1,504,366)
(1,504,366)
Balance at 30 April 2019
400
711,025
711,425
Year ended 30 April 2020:
Profit and total comprehensive income for the year
-
1,792,348
1,792,348
Dividends
9
-
(2,109,342)
(2,109,342)
Balance at 30 April 2020
400
394,031
394,431
THE GUILD OF CONSTRUCTION WORKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2020
- 9 -
1
Accounting policies
Company information
The Guild of Construction Workers Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office
and business address
is
Fifth Floor, 79 College Road, Harrow, Middlesex, HA1 1BD.
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. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
The financial statements of the company are consolidated in the financial statements of
Guild Corporate Services Group Limited
. These consolidated financial statements are available from its registered office
Fifth floor, 79 College Road, Harrow, Middlesex, HA1 1BD.
1.2
Going concern
At the time of approving the financial statements and h
true
aving reviewed the company’s financial forecasts and expected future cash flows, the director has a reasonable expectation that the company has adequate resources available to continue in operational existence for the foreseeable future, a period of not less than 12 months from the date of approval of these financial statements.
Based on the considerations set out above, not withstanding the matter set out in note 16 and the uncertainty relating to the COVID-19 pandemic as set out in the Strategic Report, the director believes that it remains appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate.
1.3
Turnover
Turnover represents the net charges received or receivable for the compliance services provided in the normal course of business, and is shown net of VAT and other sales related taxes
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.
THE GUILD OF CONSTRUCTION WORKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2020
1
Accounting policies
(Continued)
- 10 -
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:
Leasehold improvements
25% reducing balance over 5 years
Fixtures and fittings
25% reducing balance over 5 years
Computers
25% reducing balance over 5 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.
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
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.
1.7
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.
THE GUILD OF CONSTRUCTION WORKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2020
1
Accounting policies
(Continued)
- 11 -
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.
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,
and
loans from
fellow group companies, 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
THE GUILD OF CONSTRUCTION WORKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2020
1
Accounting policies
(Continued)
- 12 -
1.8
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.
1.9
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.
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
Turnover and other revenue
2020
2019
£
£
Turnover analysed by class of business
For the provision of compliance and engagement services
259,097,413
252,096,671
THE GUILD OF CONSTRUCTION WORKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2020
3
Turnover and other revenue
(Continued)
- 13 -
2020
2019
£
£
Other significant revenue
Interest income
11,908
28,269
2020
2019
£
£
Turnover analysed by geographical market
UK
259,097,413
252,096,671
4
Operating profit
2020
2019
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
93,701
110,774
5
Auditor's remuneration
2020
2019
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
13,500
13,500
For other services
Taxation compliance services
1,000
1,000
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Administration
1
1
7
Interest receivable and similar income
2020
2019
£
£
Interest income
Interest on bank deposits
11,908
28,269
THE GUILD OF CONSTRUCTION WORKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2020
- 14 -
8
Taxation
2020
2019
£
£
Current tax
UK corporation tax on profits for the current period
420,288
510,389
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2020
2019
£
£
Profit before taxation
2,212,636
2,648,205
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2019: 19.00%)
420,401
503,159
Tax effect of expenses that are not deductible in determining taxable profit
18,534
21,233
Capital Allowances
(18,647)
(14,003)
Taxation charge for the year
420,288
510,389
9
Dividends
2020
2019
£
£
Interim paid
2,109,342
1,504,366
THE GUILD OF CONSTRUCTION WORKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2020
- 15 -
10
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 May 2019
7,810
16,155
637,525
661,490
Additions
-
-
70,646
70,646
Disposals
-
(4,706)
(34,625)
(39,331)
At 30 April 2020
7,810
11,449
673,546
692,805
Depreciation and impairment
At 1 May 2019
4,226
10,381
274,673
289,280
Depreciation charged in the year
800
2,234
90,667
93,701
Eliminated in respect of disposals
-
(4,706)
(34,625)
(39,331)
At 30 April 2020
5,026
7,909
330,715
343,650
Carrying amount
At 30 April 2020
2,784
3,540
342,831
349,155
At 30 April 2019
3,584
5,774
362,852
372,210
11
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
21,009
123,360
Amounts owed by group undertakings
658,235
1,155,668
Other debtors
163,673
1,303,712
Prepayments and accrued income
84,345
55,248
927,262
2,637,988
12
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
3,903,835
4,072,645
Amounts owed to group undertakings
-
284,239
Corporation tax
168,138
212,755
Other taxation and social security
2,399
2,399
Other creditors
13,663
-
Accruals and deferred income
470,167
402,177
4,558,202
4,974,215
THE GUILD OF CONSTRUCTION WORKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2020
- 16 -
13
Share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
400 Ordinary shares of £1 each
400
400
14
Related party transactions
The company has taken advantage of the exemption available under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
At the year end, a net amount of
£3,883,945 (2019:
£4,031,310) was due to Guild Resources Limited, a company under common ownership.
15
Ultimate controlling party
The ultimate controlling party is D S Reynolds.
16
Contingent Liability
During the
year ended 30 April 2018
, the existence of a contingent liability came to the attention of the director. The director’s best estimate of the possible outflow of economic benefits arising as a result of this contingent liability is £1.58m, after the expected effect of tax. At this stage the director does not consider the likelihood of the contingent liability crystallising to be probable. Accordingly, no provision has been made in the financial statements at the balance sheet date.
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