REGISTERED NUMBER: 02113380 (England and Wales)

A. & N. Lewis Limited

Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 30 September 2017

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Statement of Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Notes to the Financial Statements

10

Directors:

A R Gentile

A Gooch

G W M White

Registered office:

Unit 8

Ely Bridge Industrial Estate

Wroughton Place - Ely

Cardiff

CF5 4AQ

Registered number:

02113380 (England and Wales)

Auditors:

Haines Watts Wales LLP, Statutory Auditors

7 Neptune Court

Vanguard Way

Cardiff

CF24 5PJ

Bankers:

Barclays Commercial Bank

PO Box 674

3rd Floor

Windsor Court

Cardiff

CF10 3ZL

Solicitors:

Greenaway Scott

The Loft at The Maltings

East Tyndall Street

Cardiff

CF24 5EZ

The directors present their strategic report for the year ended 30 September 2017.

Review of business

The company's key financial and other performance indicators during the year were as follows:

Unit

2017

2016

Turnover

£

10,715,902

12,462,633

Gross profit margin

%

19

17

Profit before tax

£

622,640

742,994

Principal risks and uncertainties

The business' principal financial instruments comprise bank balances, trade debtors, trade creditors, loans

to the business and finance lease agreements. The main purpose of these instruments is to finance the

business' operations.

In respect of bank balances, the liquidity risk is managed by maintaining a positive bank balance for working

capital and the use of a bank loan for longer term projects. All of the business' cash balances are held in

such a way that achieves a competitive rate of interest. The business makes use of money market facilities

where funds are available.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered

to customers and the regular monitoring of amounts outstanding for both time and credit limits. The

amounts presented in the balance sheet are net of allowances for doubtful debtors.

Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Loans in the current year comprise loans from financial institutions. The interest rate and monthly

repayments on the loans from financial institutions are fixed. The business manages the liquidity risk by

ensuring that there are sufficient funds to meet the payments.

The business is a lessee in respect of finance leased assets. The liquidity risk in respect of these is

managed by ensuring that there are sufficient funds to meet the payments.

On behalf of the board:

A R Gentile - Director

22 June 2018

The directors present their report with the financial statements of the company for the year ended 30 September 2017.

Principal activity

The principal activity of the company is that of building contractors and specialist decorators.

Dividends

No interim dividend was paid during the year. The directors recommend a final dividend of £5 per share.

The total distribution of dividends for the year ended 30 September 2017 will be £ 200,000 .

Directors

The directors shown below have held office during the whole of the period from 1 October 2016 to the date

of this report.

A R Gentile

A Gooch

G W M White

Statement of directors' responsibilities

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the

financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law

the directors have elected to prepare the financial statements in accordance with United Kingdom Generally

Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including

Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of

Ireland'. Under company law the directors must not approve the financial statements unless they are

satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of

the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and

explain the company's transactions and disclose with reasonable accuracy at any time the financial position

of the company and enable them to ensure that the financial statements comply with the Companies Act

2006. They are also responsible for safeguarding the assets of the company and hence for taking

reasonable steps for the prevention and detection of fraud and other irregularities.

Statement as to disclosure of information to auditors

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the

Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the

steps that he ought to have taken as a director in order to make himself aware of any relevant audit

information and to establish that the company's auditors are aware of that information.

On behalf of the board:

A R Gentile - Director

22 June 2018

Opinion

We have audited the financial statements of A. & N. Lewis Limited (the 'company') for the year ended

30 September 2017 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of

Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting

policies. The financial reporting framework that has been applied in their preparation is applicable law and

United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial

Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted

Accounting Practice).

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of

the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's

members those matters we are required to state to them in a Report of the Auditors and for no other

purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other

than the company and the company's members as a body, for our audit work, for this report, or for the

opinions we have formed.

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 September 2017 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and

applicable law. Our responsibilities under those standards are further described in the Auditors'

responsibilities for the audit of the financial statements section of our report. We are independent of the

company in accordance with the ethical requirements that are relevant to our audit of the financial

statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical

responsibilities in accordance with these requirements. We believe that the audit evidence we have

obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to

report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in

the Strategic Report and the Report of the Directors, but does not include the financial statements and our

Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and we do not express any

form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information

and, in doing so, consider whether the other information is materially inconsistent with the financial

statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based

on the work we have performed, we conclude that there is a material misstatement of this other information,

we are required to report that fact. We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course

of the audit, we have not identified material misstatements in the Strategic Report or the Report of the

Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to

report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors

are responsible for the preparation of the financial statements and for being satisfied that they give a true

and fair view, and for such internal control as the directors determine necessary to enable the preparation of

financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to

continue as a going concern, disclosing, as applicable, matters related to going concern and using the going

concern basis of accounting unless the directors either intend to liquidate the company or to cease

operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are

free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that

includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an

audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,

they could reasonably be expected to influence the economic decisions of users taken on the basis of these

financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the

Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part

of our Report of the Auditors.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of

the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s

members those matters we are required to state to them in an auditor’s report and for no other purpose. To

the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the

company and the company’s members as a body, for our audit work, for this report, or for the opinions we

have formed.

Stephen Lucey (Senior Statutory Auditor)

for and on behalf of Haines Watts Wales LLP, Statutory Auditors

7 Neptune Court

Vanguard Way

Cardiff

CF24 5PJ

29 June 2018

Turnover

3

10,715,902

12,462,633

Cost of sales

(8,663,567

)

(10,375,764

)

Gross profit

2,052,335

2,086,869

Administrative expenses

(1,419,477

)

(1,331,127

)

632,858

755,742

Other operating income

-

3,000

Operating profit

632,858

758,742

Interest receivable and similar income

6

-

1,014

632,858

759,756

Interest payable and similar expenses

7

(10,218

)

(16,762

)

Profit before taxation

8

622,640

742,994

Tax on profit

9

(90,515

)

(139,820

)

Profit for the financial year

532,125

603,174

Other comprehensive income

-

-

Total comprehensive income for the year

532,125

603,174

Fixed assets

Tangible assets

11

253,321

239,498

Current assets

Stocks

12

5,250

5,250

Debtors

13

4,027,836

2,861,211

Cash at bank and in hand

1,111,994

1,426,605

5,145,080

4,293,066

Creditors

Amounts falling due within one year

14

(3,068,921

)

(2,533,744

)

Net current assets

2,076,159

1,759,322

Total assets less current liabilities

2,329,480

1,998,820

Creditors

Amounts falling due after more than one year

15

(110,575

)

(116,290

)

Provisions for liabilities

19

(4,250

)

-

Net assets

2,214,655

1,882,530

Capital and reserves

Called up share capital

20

40,000

40,000

Retained earnings

21

2,174,655

1,842,530

Shareholders' funds

2,214,655

1,882,530

The financial statements were approved by the Board of Directors on 22 June 2018 and were signed on its behalf by:

A R Gentile - Director

A Gooch - Director

G W M White - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2015

40,000

1,509,356

1,549,356

Changes in equity

Dividends

-

(270,000

)

(270,000

)

Total comprehensive income

-

603,174

603,174

Balance at 30 September 2016

40,000

1,842,530

1,882,530

Changes in equity

Dividends

-

(200,000

)

(200,000

)

Total comprehensive income

-

532,125

532,125

Balance at 30 September 2017

40,000

2,174,655

2,214,655

1.	Statutory information

A. & N. Lewis Limited is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the Company

Information page.

2.	Accounting policies

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The company has taken advantage of the following disclosure exemptions in preparing these

financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the

UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of Section 33 Related Party Disclosures paragraph 33.7.

These disclosures are included within the financial statements of AG Newco Ltd which have been

filed at Companies House.

Turnover

Turnover represents amounts chargeable, net of value added tax, in respect of the sale of building

and decorating services to customers.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

20% on reducing balance

Motor vehicles

-

25% on cost

Computer equipment

-

33% on reducing balance

Stock and long-term contracts

Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow

moving stocks. Net realisable value is based on selling price less anticipated costs to completion and

selling costs. Cost includes all direct costs and an appropriate proportion of fixed and variable

overheads.

Profit on long-term contracts is recognised as the work is carried out where the final outcome can be

assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the

proportion of the work carried out in the year, by recording turnover and related costs (as defined in

stocks above) as contract activity progresses. Turnover is calculated as the proportion of total

contract value which costs incurred to date bear to total expected costs for that contract. Revenues

derived from variations on contracts are recognised only when they have been accepted by the

customer. Full provision is made for losses on contracts in the year in which they are foreseen.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of

Comprehensive Income, except to the extent that it relates to items recognised in other

comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been

enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at

the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods

different from those in which they are recognised in financial statements. Deferred tax is measured

using tax rates and laws that have been enacted or substantively enacted by the year end and that

are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is

probable that they will be recovered against the reversal of deferred tax liabilities or other future

taxable profits.

Hire purchase and leasing commitments

Rentals payable under operating leases are charged in the profit and loss account on a straight line

basis over the lease term.

Assets held under finance leases, which are leases where substantially all the risks and rewards of

ownership of the asset have passed to the company, are capitalised in the balance sheet as tangible

fixed assets and are depreciated over the shorter of the lease term and their useful lives. The capital

elements of future obligations under the leases are included as liabilities in the balance sheet. The

interest element of the rental obligation is charged to the profit and loss account over the period of

the lease and represents a constant proportion of the balance of capital repayments outstanding.

Assets held under hire purchase agreements are capitalised as tangible fixed assets and are

depreciated over their useful lives. The capital element of future finance payments is included within

creditors. Finance charges are allocated to accounting periods on a straight line basis over the length

of the contract.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the

company's pension scheme are charged to profit or loss in the period to which they relate.

Debtors and creditors due within 1 year

Debtors and creditors with no stated interest rate and receivable or payable within one year are

recorded at transaction price.

3.

Turnover

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2017

2016

£

£

Work done

10,697,097

12,406,002

Other sales income

18,805

56,631

10,715,902

12,462,633

4.	Employees and directors

2017

2016

£

£

Wages and salaries

2,516,473

2,519,391

Social security costs

270,266

263,396

Other pension costs

16,147

16,482

2,802,886

2,799,269

The average number of employees during the year was as follows:

2017

2016

Directors

3

3

Administration and support

16

17

Site Staff

64

67

83

87

5.	Directors' emoluments

2017

2016

£

£

Directors' remuneration

333,187

256,767

Directors' pension contributions to money purchase schemes

1,092

642

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

3

3

Information regarding the highest paid director is as follows:

2017

2016

£

£

Emoluments etc

115,037

66,577

Pension contributions to money purchase schemes

364

-

6.

Interest receivable and similar income

2017

2016

£

£

Deposit account interest

-

1,014

7.

Interest payable and similar expenses

2017

2016

£

£

Bank interest

3,682

4,458

Hire purchase

6,536

12,304

10,218

16,762

8.	Profit before taxation

The profit is stated after charging/(crediting):

2017

2016

£

£

Hire of plant and machinery

497,238

550,709

Depreciation - owned assets

8,435

1,295

Depreciation - assets on hire purchase contracts

49,225

82,753

Profit on disposal of fixed assets

(5,200

)

(11,801

)

Auditors' remuneration

7,450

6,632

Auditors' remuneration for non audit work

3,018

5,000

9.

Taxation

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2017

2016

£

£

Current tax:

UK corporation tax

90,515

139,820

Tax on profit

90,515

139,820

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The

difference is explained below:

2017

2016

£

£

Profit before tax

622,640

742,994

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2016 - 20%)

118,302

148,599

Effects of:

Expenses not deductible for tax purposes

739

5,452

Depreciation in excess of capital allowances

4,839

7,838

Profit on disposal of assets

(988

)

(2,360

)

Group relief

(35,601

)

(19,709

)

Change in corporation tax rates

3,224

-

Total tax charge

90,515

139,820

10.

Dividends

2017

2016

£

£

Ordinary shares of £1 each

Final

200,000

270,000

11.	Tangible fixed assets

Freehold

Plant and

Motor

Computer

property

machinery

vehicles

equipment

Totals

£

£

£

£

£

Cost

At 1 October 2016

139,375

49,404

287,935

26,382

503,096

Additions

-

-

66,486

4,997

71,483

Disposals

-

-

(37,686

)

-

(37,686

)

At 30 September 2017

139,375

49,404

316,735

31,379

536,893

Depreciation

At 1 October 2016

-

49,404

192,179

22,015

263,598

Charge for year

-

-

55,374

2,286

57,660

Eliminated on disposal

-

-

(37,686

)

-

(37,686

)

At 30 September 2017

-

49,404

209,867

24,301

283,572

Net book value

At 30 September 2017

139,375

-

106,868

7,078

253,321

At 30 September 2016

139,375

-

95,756

4,367

239,498

Included in the cost of freehold property is freehold land of £139,377 (2016: £139,377) which is not

depreciated

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

vehicles

£

Cost

At 1 October 2016

173,759

Additions

46,290

Transfer to ownership

(54,550

)

At 30 September 2017

165,499

Depreciation

At 1 October 2016

81,471

Charge for year

49,225

Transfer to ownership

(48,613

)

At 30 September 2017

82,083

Net book value

At 30 September 2017

83,416

At 30 September 2016

92,288

12.

Stocks

2017

2016

£

£

Stocks

5,250

5,250