COMPANY REGISTRATION NO. 06254997 (England and Wales)
CRAIG HINKS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2020
PAGES FOR FILING WITH REGISTRAR
CRAIG HINKS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
CRAIG HINKS LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2020
31 August 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Intangible assets
3
297,000
339,429
Tangible assets
4
268,557
302,880
565,557
642,309
Current assets
Stocks
144,168
107,652
Debtors
5
298,300
332,438
Cash at bank and in hand
351,589
179,448
794,057
619,538
Creditors: amounts falling due within one year
6
(654,440)
(546,516)
Net current assets
139,617
73,022
Total assets less current liabilities
705,174
715,331
Creditors: amounts falling due after more than one year
7
(224,033)
(350,369)
Provisions for liabilities
(26,008)
(28,299)
Net assets
455,133
336,663
Capital and reserves
Called up share capital
8
2
2
Profit and loss reserves
455,131
336,661
Total equity
455,133
336,663
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 31 August 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.
The financial statements were approved by the board of directors and authorised for issue on 20 December 2020 and are signed on its behalf by:
Mr C Hinks
Director
Company Registration No. 06254997
CRAIG HINKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2020
- 2 -
1
Accounting policies
Company information
Craig Hinks Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
110 The Highway, New Inn, Pontypool, NP4 0PJ.
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
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
1.3
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. 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.
1.4
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:
Land and buildings Freehold
straight line over 25 years
Land and buildings Leasehold
straight line over 100 years
Fixtures, fittings & equipment
25% on reducing balance and 10% straight line
Motor vehicles
25% on reducing balance
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
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.
CRAIG HINKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2020
1
Accounting policies
(Continued)
- 3 -
1.6
Financial instruments
Debtors and creditors with no stated interest rate and receivable or payable within one
y
ear are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
1.7
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.
1.8
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.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
CRAIG HINKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2020
1
Accounting policies
(Continued)
- 4 -
1.11
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
21
23
3
Intangible fixed assets
Goodwill
£
Cost
At 1 September 2019 and 31 August 2020
1,383,050
Amortisation and impairment
At 1 September 2019
1,043,621
Amortisation charged for the year
42,429
At 31 August 2020
1,086,050
Carrying amount
At 31 August 2020
297,000
At 31 August 2019
339,429
CRAIG HINKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2020
- 5 -
4
Tangible fixed assets
Land and buildings Freehold
Land and buildings Leasehold
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 September 2019
60,000
81,278
260,511
81,900
483,689
Additions
-
-
910
-
910
At 31 August 2020
60,000
81,278
261,421
81,900
484,599
Depreciation and impairment
At 1 September 2019
14,400
2,439
125,182
38,788
180,809
Depreciation charged in the year
2,400
813
21,242
10,778
35,233
At 31 August 2020
16,800
3,252
146,424
49,566
216,042
Carrying amount
At 31 August 2020
43,200
78,026
114,997
32,334
268,557
At 31 August 2019
45,600
78,839
135,329
43,112
302,880
5
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
169,731
203,501
Other debtors
128,569
128,937
298,300
332,438
6
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans
124,349
119,739
Trade creditors
388,088
391,232
Corporation tax
56,159
14,833
Other taxation and social security
3,644
4,234
Other creditors
82,200
16,478
654,440
546,516
The bank loans of £
124,349
(201
9
: £
119,739
) are secured by fixed charges over all property and assets.
CRAIG HINKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2020
- 6 -
7
Creditors: amounts falling due after more than one year
2020
2019
£
£
Bank loans and overdrafts
224,033
344,993
Other creditors
-
5,376
224,033
350,369
The bank loans of £
224,033
(201
9
: £
344,993
) are secured by fixed charges over all property and assets.
Amounts included above which fall due after five years are as follows:
Payable by instalments
26,650
42,449
8
Called up share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
1 Ordinary A of £1 each
1
1
1 Ordinary B of £1 each
1
1
2
2
9
Directors' transactions
Dividends totalling £88,127 (2019 - £61,500) were paid in the year in respect of shares held by the company's directors.
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Directors
-
70,627
81,505
(88,127)
64,005
70,627
81,505
(88,127)
64,005