Company Registration No. 05206041 (England and Wales)
CROSSCO (820) LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2017
PAGES FOR FILING WITH REGISTRAR
CROSSCO (820) LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
CROSSCO (820) LIMITED
BALANCE SHEET
AS AT
28 FEBRUARY 2017
28 February 2017
- 1 -
2017
2016
Notes
£
£
£
£
Fixed assets
Intangible assets
306,553
345,512
Investments
4
8,075,403
8,075,403
Current assets
Debtors
6
330,330
157,626
Cash at bank and in hand
25,583
25,323
355,913
182,949
Creditors: amounts falling due within one year
7
(1,532,642)
(1,665,133)
Net current liabilities
(1,176,729)
(1,482,184)
Total assets less current liabilities
7,205,227
6,938,731
Creditors: amounts falling due after more than one year
8
(5,684,353)
(5,482,965)
Net assets
1,520,874
1,455,766
Capital and reserves
Called up share capital
9
4,700
4,700
Share premium account
1,303,163
1,303,163
Capital redemption reserve
5,744
5,744
Profit and loss reserves
207,267
142,159
Total equity
1,520,874
1,455,766
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 28 February 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
T
he directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.
CROSSCO (820) LIMITED
BALANCE SHEET (CONTINUED)
AS AT
28 FEBRUARY 2017
28 February 2017
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 24 November 2017 and are signed on its behalf by:
C. Lister
Director
Company Registration No. 05206041
CROSSCO (820) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2017
- 3 -
1
Accounting policies
Company information
Crossco (820) Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
c/o Envirotec Limited, Desborough Park Road, High Wycombe, Buckinghamshire, HP12 3BX.
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.
These financial statements for the year ended 28 February 2017
are the
first
financial statements of Crossco (820) Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 March 2015. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.
1.2
Turnover
Turnover represents amounts receivable for
management
services
provided
net of VAT
.
1.3
Intangible fixed assets - goodwill
Goodwill, which represents the excess of cost of acquisitions of businesses over the value attributed to their net assets, is amortised through the profit and loss account by equal annual instalments over its estimated useful economic life. The value of goodwill is reviewed annually for any impairment and provision made against any permanent diminution in value.
1.4
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
1.5
Cash at bank and in hand
Cash at bank and in hand
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.
CROSSCO (820) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2017
1
Accounting policies
(Continued)
- 4 -
1.6
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.
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
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.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
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.
CROSSCO (820) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2017
1
Accounting policies
(Continued)
- 5 -
1.9
The company has introduced an Employee Benefit Trust for the benefit of employees. Monies held in this trust are held by independent trustees and managed at their discretion.
Where the company retains future economic benefit from, and has de facto control of the assets and liabilities of the trust, they are accounted for as assets and liabilities of the company until the earlier of the date that an allocation of trust funds to employees in respect of past services is declared and the date that assets of the trust vest in identified individuals.
Where monies held in a trust are determined by the company on the basis of employees' past services to the business and the company can obtain no future economic benefit from those monies, such monies, whether in the trust or accrued for by the company are charged to the profit and loss account in the period to which they relate.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 1 (2016 - 1).
3
Intangible fixed assets
Goodwill
£
Cost
At 1 March 2016 and 28 February 2017
779,194
Amortisation and impairment
At 1 March 2016
433,682
Amortisation charged for the year
38,959
At 28 February 2017
472,641
Carrying amount
At 28 February 2017
306,553
At 29 February 2016
345,512
4
Fixed asset investments
2017
2016
£
£
Investments
8,075,403
8,075,403
CROSSCO (820) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2017
4
Fixed asset investments
(Continued)
- 6 -
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 March 2016 & 28 February 2017
10,925,403
Impairment
At 1 March 2016 & 28 February 2017
2,850,000
Carrying amount
At 28 February 2017
8,075,403
At 29 February 2016
8,075,403
5
Subsidiaries
Details of the company's subsidiaries at 28 February 2017 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Envirotec Limited
England
Manufacture of air handling equipment
Ordinary
100.00
Gransim Properties Limited
England
Dormant
Ordinary
100.00
6
Debtors
2017
2016
Amounts falling due within one year:
£
£
Other debtors
322,787
150,083
Deferred tax asset
7,543
7,543
330,330
157,626
CROSSCO (820) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2017
- 7 -
7
Creditors: amounts falling due within one year
2017
2016
£
£
Bank loans and overdrafts
3,000
31,007
Trade creditors
30,256
23,412
Amounts due to group undertakings
1,201,749
1,116,130
Other taxation and social security
1,090
736
Other creditors
296,547
493,848
1,532,642
1,665,133
Security has been provided for the bank loan.
Included in other creditors at 28 February 2017 was £188,580 (2016: £188,580) owed to Mrs V. Lister (spouse of C. Lister) in respect of Loan Notes issued in January 2005.
The loan repayment is at a premium of 20% such that the Company shall pay £1.20 in respect of each £1 of Stock redeemed. At 28 February 2017 the accrued redemption premium amounts to £37,716.
8
Creditors: amounts falling due after more than one year
2017
2016
Notes
£
£
Bank loans and overdrafts
758,950
532,562
Other borrowings
-
25,000
Amounts due to group undertakings
4,925,403
4,925,403
5,684,353
5,482,965
Security has been provided for the bank loan.
9
Called up share capital
2017
2016
£
£
Ordinary share capital
Issued and fully paid
470,000 Ordinary Shares of 1p each
4,700
4,700
4,700
4,700
10
Financial commitments, guarantees and contingent liabilities
The company, together with Envirotec Limited, is a member of a VAT Group under which both members are jointly and severally liable.
The company is party to cross guarantees given by group companies to
Barclays Bank
Plc. The Bank also holds a debenture fixed over the assets of the company and the other companies within the Group.
CROSSCO (820) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2017
- 8 -
11
Related party transactions
Transactions with related parties
During the year, the company charged a management charge of £218,000 (2016: £205,
000
) in respect of services provided to Envirotec Limited, a subsidiary company. At 28 February 2017, the amount owed to Envirotec Limited was £1,201,749 (2016: £
1
,116,130).
Included in creditors: amounts due after more than one year is an amount of £4,925,403
(2016: £4,925,403). owing to Gransim Properties Limited, a subsidiary company.
Included in other creditors is loan stock of £188,580 owed to V Lister, Spouse of C Lister (Director). Interest of
£
18,907
(201
6
: £
18,861
)
was paid to V Lister in the year.
A. Watson is a director of both Crossco (820) Limited and Alex Watson & Associates Limited. During the year, the company paid
£
25,440
(201
6:
£
25,440
)
to Alex Watson & Associates Limited for professional services.