Company Registration No. SC324512 (Scotland)
ALLAN WATER CONSTRUCTION LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2019
PAGES FOR FILING WITH REGISTRAR
ALLAN WATER CONSTRUCTION LTD
COMPANY INFORMATION
Director
Mr D C Stirling
Secretary
Mr J Baxter
Company number
SC324512
Registered office
24b Kenilworth Road
Bridge of Allan
Stirling
FK9 4DU
Auditor
Campbell Dallas Audit Services
Titanium 1
King's Inch Place
Renfrew
PA4 8WF
ALLAN WATER CONSTRUCTION LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
ALLAN WATER CONSTRUCTION LTD
BALANCE SHEET
AS AT
31 JULY 2019
31 July 2019
- 1 -
2019
2018
Notes
£
£
£
£
Current assets
Debtors
3
2
2
Creditors: amounts falling due within one year
4
(37,976)
(37,976)
Net current liabilities
(37,974)
(37,974)
Capital and reserves
Called up share capital
5
2
2
Profit and loss reserves
(37,976)
(37,976)
Total equity
(37,974)
(37,974)
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
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 and signed by the director and authorised for issue on 30 July 2020
Mr D C Stirling
Director
Company Registration No. SC324512
ALLAN WATER CONSTRUCTION LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2019
- 2 -
1
Accounting policies
Company information
Allan Water Construction Ltd is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
24b Kenilworth Road, Bridge of Allan, Stirling, FK9 4DU.
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.
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:
-
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares
;
-
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash
f
low and related notes and disclosures
;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income
;
-
Section 26 ‘Share based Payment’ – Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements
;
-
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel
.
The financial statements of the company are consolidated in the financial statements of
Allan Water Developments Limited
. These consolidated financial statements are available from its registered office,
24b Kenilworth Road, Bridge of Allan, Stirling, FK9 4DU
.
ALLAN WATER CONSTRUCTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2019
1
Accounting policies
(Continued)
- 3 -
1.2
Going concern
The directors are required to prepare the statutory financial statements on the going concern basis unless it is
true
inappropriate to presume that the
company
will continue in business. In satisfaction of this responsibility the
directors have considered the
company's
ability to meet its liabilities as they fall due.
The
company
meets its day to day working capital requirements through
a revolving credit facility and r
elated party funding. Management information tools including budgets and cash flow
forecasts are used to monitor and manage current and future liquidity.
The
company
also pays special attention to the recent
COVID-
19 outbreak and the associated impact on the
business
.
The current and future financial position of the
company
, its cash flows and liquidity position have been reviewed
by the directors.
The directors have prepared detailed financial projections for a period extending at least 12 months from the date of approval of these financial statements. At the year end, the company had net liabilities of £37,974.
Despite having net liabilities, the
company
has obtained assurances
that its
related party undertakings
will continue to provide such financial support as necessary
to
meet
its
long term objectives
. This includes ensuring the company has sufficient headroom to meet any additional cash requirements that would be contingent on a
downturn in activity in relation to the
COVID
-19 pandemic. The directors have satisfied themselves as to the validity of these assurances and that
its related party undertakings
h
ave
the means and authority to provide such funding as and when it is required.
After due consideration of the above, and having obtained appropriate assurances, t
he
directors are
satisfied that there is a reasonable expectation that the
company
will have adequate resources to continue in existence for the foreseeable future. Accordingly, the
directors
consider it appropriate to prepare the financial statements on the going concern basis.
1.3
Profit and loss account
The company has not traded during the year or the preceding financial
period
. During
this time
the company received no income and incurred no expenditure and therefore no Profit and loss account is presented
in these financial statements.
1.4
Cash at bank and in hand
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.
1.5
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.
ALLAN WATER CONSTRUCTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2019
1
Accounting policies
(Continued)
- 4 -
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, 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.
1.6
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.
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
Debtors
2019
2018
Amounts falling due within one year:
£
£
Other debtors
2
2
ALLAN WATER CONSTRUCTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2019
- 5 -
4
Creditors: amounts falling due within one year
2019
2018
£
£
Amounts owed to group undertakings
34,544
34,544
Taxation and social security
3,282
3,282
Other creditors
150
150
37,976
37,976
5
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
2 Ordinary shares of £1 each
2
2
6
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
Emphasis of matter - risks and uncertainties relating to COVID-19 pandemic
We draw attention to note 1.
2
of the financial statements, which details the risks and uncertainties arising from the COVID-19 pandemic. Our opinion is not modified with respect to this matter.
The senior statutory auditor was Greig McKnight.
The auditor was Campbell Dallas Audit Services.
7
Financial commitments, guarantees and contingent liabilities
The company has cross guarantees in place with its fellow group companies in respect of the facilities available to the group. At the year end the facilities were utilised to the extent of £10,000,000 of which £nil is included in its own balance sheet.
8
Events after the reporting date
The global outbreak of COVID-19 after the year-end has resulted in an elevated level of uncertainty within the economy. The longer term effects of the virus, and the subsequent impact of the Government-imposed restrictions on movement and business, are not yet clear.
At this time, the directors believe there to be no quantifiable impact on the carrying value of assets in the balance sheet that results in either an adjusting or non-adjusting post balance sheet event.
ALLAN WATER CONSTRUCTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2019
- 6 -
9
Controlling party
The company is under control of Allan Water Developments Limited, a company incorporated in Scotland.
Allan Water Developments Limited is a company controlled by Mr D C Stirling.