Registration number:
Hodge Single Ply Roofing Limited
for the
Year Ended 31 December 2018
Hodge Single Ply Roofing Limited
Contents
Company Information |
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Accountants' Report |
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Balance Sheet |
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Notes to the Financial Statements |
Hodge Single Ply Roofing Limited
Company Information
Directors |
Mrs B G Hodge G J Hodge |
Company secretary |
Mrs B G Hodge |
Registered office |
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Accountants |
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Page 1 |
Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Hodge Single Ply Roofing Limited
for the Year Ended 31 December 2018
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Hodge Single Ply Roofing Limited for the year ended 31 December 2018 as set out on pages 3 to 15 from the company's accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
http://www.icaew.com/en/members/regulations-standards-and-guidance/.
This report is made solely to the Board of Directors of Hodge Single Ply Roofing Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of Hodge Single Ply Roofing Limited and state those matters that we have agreed to state to the Board of Directors of Hodge Single Ply Roofing Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Hodge Single Ply Roofing Limited and its Board of Directors as a body for our work or for this report.
It is your duty to ensure that Hodge Single Ply Roofing Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Hodge Single Ply Roofing Limited. You consider that Hodge Single Ply Roofing Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the accounts of Hodge Single Ply Roofing Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.
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Chartered Accountants
Weston-super-Mare
Somerset
BS23 1NF
Page 2 |
Hodge Single Ply Roofing Limited
(Registration number: 04195350)
Balance Sheet as at 31 December 2018
Note |
2018 |
2017 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Investments |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Profit and loss account |
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Total equity |
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For the financial year ending 31 December 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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• |
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
Page 3 |
Hodge Single Ply Roofing Limited
(Registration number: 04195350)
Balance Sheet as at 31 December 2018
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.
Approved and authorised by the
.........................................
Director
Page 4 |
Hodge Single Ply Roofing Limited
Notes to the Financial Statements for the Year Ended 31 December 2018
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
United Kingdom
The principal place of business is:
11 Warne Park
Warne Road
Weston-super-Mare
Somerset
BS23 3TP
United Kingdom
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The presentation currency of the financial statements is the Pound Sterling (£).
Page 5 |
Hodge Single Ply Roofing Limited
Notes to the Financial Statements for the Year Ended 31 December 2018
2 |
Accounting policies (continued) |
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.
The company recognises revenue when:
- The amount of revenue can be reliably measured;
- it is probable that future economic benefits will flow to the entity;
- and specific criteria have been met for each of the company's activities.
Tax
Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when 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.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Page 6 |
Hodge Single Ply Roofing Limited
Notes to the Financial Statements for the Year Ended 31 December 2018
2 |
Accounting policies (continued) |
Asset class |
Depreciation method and rate |
Improvements to leasehold property |
Straight line over 10 years |
Furniture, fixtures and equipment |
15% reducing balance/straight line over 3 years |
Motor vehicles |
25% reducing balance |
Property, plant and equipment |
15% reducing balance |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Page 7 |
Hodge Single Ply Roofing Limited
Notes to the Financial Statements for the Year Ended 31 December 2018
2 |
Accounting policies (continued) |
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Provisions
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Page 8 |
Hodge Single Ply Roofing Limited
Notes to the Financial Statements for the Year Ended 31 December 2018
2 |
Accounting policies (continued) |
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
Classification
Staff numbers |
The average number of persons employed by the company during the year, was
Page 9 |
Hodge Single Ply Roofing Limited
Notes to the Financial Statements for the Year Ended 31 December 2018
Tangible assets |
Improvements to leasehold property |
Furniture, fittings and equipment |
Motor vehicles |
Property, plant and equipment |
Total |
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Cost or valuation |
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At 1 January 2018 |
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Additions |
- |
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- |
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At 31 December 2018 |
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Depreciation |
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At 1 January 2018 |
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Charge for the year |
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At 31 December 2018 |
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Carrying amount |
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At 31 December 2018 |
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At 31 December 2017 |
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Page 10 |
Hodge Single Ply Roofing Limited
Notes to the Financial Statements for the Year Ended 31 December 2018
4 |
Tangible assets (continued) |
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
2018 |
2017 |
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Motor vehicles |
43,802 |
62,372 |
Stocks |
2018 |
2017 |
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Other inventories |
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Debtors |
2018 |
2017 |
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Trade debtors |
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Prepayments |
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Other debtors |
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Current asset investments |
2018 |
2017 |
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Other investments |
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Page 11 |
Hodge Single Ply Roofing Limited
Notes to the Financial Statements for the Year Ended 31 December 2018
Creditors |
Creditors: amounts falling due within one year
2018 |
2017 |
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Due within one year |
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Trade creditors |
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Taxation and social security |
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Accruals and deferred income |
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Other creditors |
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Creditors include net obligations under finance lease and hire purchase contracts which are secured of £26,274 (2017 - £28,494).
Creditors: amounts falling due after more than one year
Note |
2018 |
2017 |
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Due after one year |
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Loans and borrowings |
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Creditors include net obligations under finance lease and hire purchase contracts which are secured of £10,058 (2017 - £36,332).
Deferred tax and other provisions |
Deferred tax |
Other provisions |
Total |
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At 1 January 2018 |
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Increase (decrease) in existing provisions |
( |
( |
( |
At 31 December 2018 |
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Page 12 |
Hodge Single Ply Roofing Limited
Notes to the Financial Statements for the Year Ended 31 December 2018
9 |
Deferred tax and other provisions (continued) |
The company has, in previous years, appointed assets to an Employer Financed Retirement Benefit Scheme. The company is liable for PAYE and NIC that may arise on awards made by the Trustees. The Directors were of the opinion that the Trustees would award most of the benefits in a way that would not result in a PAYE or NIC liability and as such, no provision has previously been made in the financial statements for any amounts that may be due. However, the directors were advised to reach settlement with H M Revenue and Customs in respect of the awards made and as such a provision was made in the 2017 year to reflect the estimated PAYE, NIC and associated costs of settlement. The settlement was agreed with HM Revenue and Customs on 3 April 2019 and the provision has been adjusted in the 2018 year to reflect the agreed figures. Payments made against Accelerated Payment Notices, issued in respect of this arrangement, of £715,901 are included in Other Debtors. These payments on account will be released against the settlement liability on the due date fo payment.
Share capital |
Allotted, called up and fully paid shares
2018 |
2017 |
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No. |
£ |
No. |
£ |
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100 |
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100 |
Page 13 |
Hodge Single Ply Roofing Limited
Notes to the Financial Statements for the Year Ended 31 December 2018
Loans and borrowings |
2018 |
2017 |
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Non-current loans and borrowings |
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Finance lease liabilities |
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Related party transactions |
Transactions with directors |
2018 |
At 1 January 2018 |
Advances to directors |
Repayments |
At 31 December 2018 |
G J and Mrs B G Hodge |
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Directors loan account |
227,717 |
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( |
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2017 |
At 1 January 2017 |
Advances to directors |
Repayments |
At 31 December 2017 |
G J and Mrs B G Hodge |
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Directors loan account |
149,837 |
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( |
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No section 455 tax has been provided on the overdrawn directors loan accounts as this has been repaid within 9 months of the company's year end.
Loan interest has been provided for on the outstanding balance using the HM Revenue and Customs aproved interest rate.
Page 14 |
Hodge Single Ply Roofing Limited
Notes to the Financial Statements for the Year Ended 31 December 2018
12 |
Related party transactions (continued) |
EV Grace Charters
(A sole trader business operated by one of the directors)
During the year, EV Grace Charters charged the company £9,000 (2017 - £14,625) for entertainment services provided to both customers and suppliers.
These transactions were carried out on an arms length basis and the directors consider the amounts charged to be at a fair market rate.
Page 15 |