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Abacus Construction (Bournemouth) Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 July 2017

Abacus Construction (Bournemouth) Limited

Contents

Balance Sheet	1
Notes to the Financial Statements	2 to 6

Abacus Construction (Bournemouth) Limited

(Registration number: 2871775)
Balance Sheet as at 31 July 2017

	Note	2017 £	2016 £
Fixed assets
Investment property	5	1,388,616	1,388,616
Current assets
Stocks	6	-	643,971
Debtors	7	1,240,428	823,792
Cash at bank and in hand		957,894	44,969
		2,198,322	1,512,732
Creditors: Amounts falling due within one year	8	(311,902)	(148,310)
Net current assets		1,886,420	1,364,422
Net assets		3,275,036	2,753,038
Capital and reserves
Called up share capital		2	2
Profit and loss account		3,275,034	2,753,036
Total equity		3,275,036	2,753,038

For the financial year ending 31 July 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 30 November 2017 and signed on its behalf by:
 

.........................................

Mr RS Bourton

Director

The notes on pages 2 to 6 form an integral part of these financial statements.

Page 1

Abacus Construction (Bournemouth) Limited

Notes to the Financial Statements for the Year Ended 31 July 2017

1	General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
Arena Business Centre
Holyrood Close Creekmoor
Poole
Dorset
BH17 7BA
England

These financial statements were authorised for issue by the Board on 30 November 2017.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Page 2

Abacus Construction (Bournemouth) Limited

Notes to the Financial Statements for the Year Ended 31 July 2017

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Plant and machinery	25% pa straight line basis
Motor vehicles	25% pa straight line basis

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Page 3

Abacus Construction (Bournemouth) Limited

Notes to the Financial Statements for the Year Ended 31 July 2017

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 2 (2016 - 2).

4	Tangible assets

	Motor vehicles  £	Total £
Cost or valuation
At 1 August 2016	42,320	42,320
At 31 July 2017	42,320	42,320
Depreciation
At 1 August 2016	42,320	42,320
At 31 July 2017	42,320	42,320
Carrying amount
At 31 July 2017	-	-

5	Investment properties

	2017 £
At 1 August	1,388,616

The director will normally apply HMRC capital indexation allowance to the period since the last independent
valuation or cost if later.
However with a combination of knowledge of current market conditions and the statement made on 6 December
2016 by the Bank of England the director has decided not to apply this enhancement subsequent to independent
valuation or cost.
The statement by the Bank of England is referred to below:
"The Bank of England has warned of a risk of further losses in the UK's commercial real estate sector. A risk of
further adjustment in the sector has been highlighted by the Bank's Financial Policy Committee and this could
create knock-on risks for the financial system. The risk to the broader financial system could be exacerbated by
the reliance on inflows of foreign capital, while the Bank says valuations appear to be 'stretched' for some parts
of the sector. Foreign investors are also vulnerable to exchange rate fluctuations. Following the Brexit vote, the
Bank says there was a sharp decline in commercial property activity, with a 27% drop in third quarter
transactions compared to the previous year. Open-ended funds have been put under pressure as a result of the
slowdown. The Bank says the ability to access credit could be weakened by another financial crisis if the value
of property used as collateral declines."

There has been no valuation of investment property by an independent valuer.

Page 4

Abacus Construction (Bournemouth) Limited

Notes to the Financial Statements for the Year Ended 31 July 2017

6

Stocks

	2017 £	2016 £
Work in progress	-	289,971
Land	-	354,000
	-	643,971

7

Debtors

	Note	2017 £	2016 £
Amounts owed by group undertakings and undertakings in which the company has a participating interest	11	794,042	-
Prepayments		497	696
Other debtors		445,889	823,096
		1,240,428	823,792

8

Creditors

Creditors: amounts falling due within one year

	2017 £	2016 £
Due within one year
Trade creditors	157,876	24,865
Taxation and social security	-	2,057
Accruals and deferred income	2,130	2,127
Other creditors	151,896	119,261
	311,902	148,310