Company Registration No. 05826081 (England and Wales)
BURROUGHS & KEAREY (FUNERAL DIRECTORS) LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
PAGES FOR FILING WITH REGISTRAR
BURROUGHS & KEAREY (FUNERAL DIRECTORS) LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
BURROUGHS & KEAREY (FUNERAL DIRECTORS) LIMITED
BALANCE SHEET
AS AT
30 JUNE 2020
30 June 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Intangible assets
4
32,400
37,800
Tangible assets
5
142,793
161,521
175,193
199,321
Current assets
Stocks
15,700
14,600
Debtors
6
245,847
433,923
Cash at bank and in hand
62,783
79,337
324,330
527,860
Creditors: amounts falling due within one year
7
(28,831)
(93,028)
Net current assets
295,499
434,832
Total assets less current liabilities
470,692
634,153
Provisions for liabilities
8
496
(1,444)
Net assets
471,188
632,709
Capital and reserves
Called up share capital
10
168,675
168,675
Retained earnings
302,513
464,034
Total equity
471,188
632,709
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 30 June 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 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.
BURROUGHS & KEAREY (FUNERAL DIRECTORS) LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 JUNE 2020
30 June 2020
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 15 April 2021 and are signed on its behalf by:
M Kearey
Director
Company Registration No. 05826081
BURROUGHS & KEAREY (FUNERAL DIRECTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
- 3 -
1
Accounting policies
Company information
Burroughs & Kearey (Funeral Directors) Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
The Chapel of Rest, Rear of Barwis Terrace, Penzance, Cornwall, TR18 2AW.
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
pound
.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future.
In making their assessment the directors have considered the impact of the COVID-19 pandemic.
Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents the total invoice value, excluding value added tax, of sales made during the year. Revenue in respect of services is recognised as the services are performed.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of
a business in 2006
. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Improvements to property
- 2% straight line
Fixtures and fittings
- 10% straights line
Computers
- 25% straight line
Motor vehicles
- 20% straight line
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
.
BURROUGHS & KEAREY (FUNERAL DIRECTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
1
Accounting policies
(Continued)
- 4 -
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible 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.
1.7
Stocks
Stocks are
valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
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.
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.
BURROUGHS & KEAREY (FUNERAL DIRECTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
1
Accounting policies
(Continued)
- 5 -
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
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.
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.
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.
BURROUGHS & KEAREY (FUNERAL DIRECTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
1
Accounting policies
(Continued)
- 6 -
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
11
9
3
Taxation
2020
2019
£
£
Current tax
UK corporation tax on profits for the current period
(14,862)
28,381
Deferred tax
Origination and reversal of timing differences
(1,939)
(2,011)
Total tax (credit)/charge
(16,801)
26,370
4
Intangible fixed assets
Goodwill
£
Cost
At 1 July 2019 and 30 June 2020
108,000
Amortisation and impairment
At 1 July 2019
70,200
Amortisation charged for the year
5,400
At 30 June 2020
75,600
Carrying amount
At 30 June 2020
32,400
At 30 June 2019
37,800
BURROUGHS & KEAREY (FUNERAL DIRECTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
- 7 -
5
Tangible fixed assets
Improvements to property
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2019
145,548
79,594
16,683
209,677
451,502
Disposals
-
-
-
(27,044)
(27,044)
At 30 June 2020
145,548
79,594
16,683
182,633
424,458
Depreciation and impairment
At 1 July 2019
30,361
60,817
13,634
185,169
289,981
Depreciation charged in the year
2,911
4,461
1,723
9,633
18,728
Eliminated in respect of disposals
-
-
-
(27,044)
(27,044)
At 30 June 2020
33,272
65,278
15,357
167,758
281,665
Carrying amount
At 30 June 2020
112,276
14,316
1,326
14,875
142,793
At 30 June 2019
115,187
18,777
3,049
24,508
161,521
6
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
192,020
427,351
Other debtors
53,827
6,572
245,847
433,923
7
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans and overdrafts
5,764
7,488
Trade creditors
13,448
16,289
Taxation and social security
-
29,635
Other creditors
9,619
39,616
28,831
93,028
BURROUGHS & KEAREY (FUNERAL DIRECTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
- 8 -
8
Provisions for liabilities
2020
2019
£
£
Deferred tax liabilities
9
-
1,444
9
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2020
2019
Balances:
£
£
Accelerated capital allowances
(496)
1,444
2020
Movements in the year:
£
Liability at 1 July 2019
1,444
Credit to profit or loss
(1,940)
Asset at 30 June 2020
(496)
10
Called up share capital
2020
2019
2020
2019
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
2020
2019
2020
2019
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference shares of £1 each
168,575
168,575
168,575
168,575
Preference shares classified as equity
168,575
168,575
Total equity share capital
168,675
168,675
BURROUGHS & KEAREY (FUNERAL DIRECTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
- 9 -
11
Directors' transactions
Amounts owed to the directors are interest free and payable on demand.
Advances or credits have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
B Kearey
-
(3,992)
49,077
(37,131)
7,954
K Kearey
-
1,286
43,290
(36,725)
7,851
L Kearey
-
(3,718)
39,714
(36,725)
(729)
M & J Kearey
-
(25,131)
126,133
(83,040)
17,962
(31,555)
258,214
(193,621)
33,038
12
Ultimate controlling party
The directors, M Kearey & J Kearey have the ultimate controlling interest by virtue of their majority shareholding in the company.
2020-06-30
2019-07-01
false
15 April 2021
CCH Software
CCH Accounts Production 2020.310
Funeral directors
B Kearey
J Kearey
K Kearey
L Kearey
M Kearey
J Kearey
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