Company Registration No. SC109767 (Scotland)
MCDONALD & MUNRO LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
PAGES FOR FILING WITH REGISTRAR
MCDONALD & MUNRO LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
MCDONALD & MUNRO LIMITED
BALANCE SHEET
AS AT
30 JUNE 2018
30 June 2018
- 1 -
2018
2017
Notes
£
£
£
£
Fixed assets
Tangible assets
3
444,323
356,387
Current assets
Stocks
262,932
129,350
Debtors
4
364,402
403,753
Cash at bank and in hand
157,219
270,677
784,553
803,780
Creditors: amounts falling due within one year
5
(757,757)
(620,813)
Net current assets
26,796
182,967
Total assets less current liabilities
471,119
539,354
Provisions for liabilities
Deferred tax liability
70,863
55,575
(70,863)
(55,575)
Net assets
400,256
483,779
Capital and reserves
Called up share capital
6
5,000
5,000
Profit and loss reserves
395,256
478,779
Total equity
400,256
483,779
MCDONALD & MUNRO LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 JUNE 2018
30 June 2018
- 2 -

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 2018 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.

The 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 9 November 2018 and are signed on its behalf by:
Miguel Gomez
Director
Company Registration No. SC109767
MCDONALD & MUNRO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
- 3 -
1
Accounting policies
Company information

McDonald & Munro Limited is a private company limited by shares incorporated in Scotland. The registered office is 4 Moycroft Industrial Estate, ELGIN, Moray, IV30 1XZ.

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 amounts 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 represents amounts receivable for electrical engineering and contract work, net of VAT.

1.3
Tangible fixed assets

Tangible fixed assets are initially 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:

Land and buildings Leasehold
- Nil
Plant and machinery
- 15% reducing balance
Fixtures, fittings & equipment
- 15% reducing balance
Motor vehicles
- 25% 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.

1.4
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment 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.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.6
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts.

MCDONALD & MUNRO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2018
1
Accounting policies
(Continued)
- 4 -
1.7
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.

Basic financial liabilities

Basic financial liabilities, including trade and other creditors, 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 payments 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. Amounts 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.

1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.9
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.

MCDONALD & MUNRO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2018
1
Accounting policies
(Continued)
- 5 -
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.

1.10
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.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

2
Employees

The average monthly number of persons (including directors) employed by the company during the year was 51 (2017 - 52).

MCDONALD & MUNRO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2018
- 6 -
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 July 2017
25,995
708,800
734,795
Additions
-
167,354
167,354
Disposals
-
(14,965)
(14,965)
At 30 June 2018
25,995
861,189
887,184
Depreciation and impairment
At 1 July 2017
-
378,408
378,408
Depreciation charged in the year
-
76,163
76,163
Eliminated in respect of disposals
-
(11,710)
(11,710)
At 30 June 2018
-
442,861
442,861
Carrying amount
At 30 June 2018
25,995
418,328
444,323
At 30 June 2017
25,995
330,392
356,387
4
Debtors
2018
2017
Amounts falling due within one year:
£
£
Trade debtors
346,222
386,065
Other debtors
18,180
17,688
364,402
403,753
5
Creditors: amounts falling due within one year
2018
2017
£
£
Bank loans and overdrafts
71,090
1,152
Trade creditors
241,573
181,329
Corporation tax
23,111
61,097
Other taxation and social security
38,724
88,594
Other creditors
383,259
288,641
757,757
620,813
MCDONALD & MUNRO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2018
- 7 -
6
Called up share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
5,000 ordinary shares of £1 each
5,000
5,000
5,000
5,000
7
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2018
2017
£
£
Within one year
33,150
33,150
Between two and five years
132,600
132,600
In over five years
1,922,700
1,955,850
2,088,450
2,121,600
8
Related party transactions
Transactions with related parties

The following amounts were outstanding at the reporting end date:

2018
2017
Amounts owed to related parties
£
£
Key management personnel
157,442
147,594
9
Directors' transactions

Dividends totalling £126,125 (2017 - £180,000) were paid in the year in respect of shares held by the company's directors.

2018-06-302017-07-01falseCCH SoftwareCCH Accounts Production 2018.220No description of principal activityGraham MorrisonChristine MorrisonMiguel GomezChristine MorrisonSC1097672017-07-012018-06-30SC1097672018-06-30SC1097672017-06-30SC109767core:LandBuildings2018-06-30SC109767core:OtherPropertyPlantEquipment2018-06-30SC109767core:LandBuildings2017-06-30SC109767core:OtherPropertyPlantEquipment2017-06-30SC109767core:CurrentFinancialInstruments2018-06-30SC109767core:CurrentFinancialInstruments2017-06-30SC109767core:WithinOneYear2018-06-30SC109767core:WithinOneYear2017-06-30SC109767core:ShareCapital2018-06-30SC109767core:ShareCapital2017-06-30SC109767core:RetainedEarningsAccumulatedLosses2018-06-30SC109767core:RetainedEarningsAccumulatedLosses2017-06-30SC109767core:ShareCapitalOrdinaryShares2018-06-30SC109767core:ShareCapitalOrdinaryShares2017-06-30SC109767bus:Director22017-07-012018-06-30SC109767core:LandBuildingscore:LeasedAssetsHeldAsLessee2017-07-012018-06-30SC109767core:PlantMachinery2017-07-012018-06-30SC109767core:FurnitureFittings2017-07-012018-06-30SC109767core:MotorVehicles2017-07-012018-06-30SC109767core:LandBuildings2017-06-30SC109767core:OtherPropertyPlantEquipment2017-06-30SC1097672017-06-30SC109767core:OtherPropertyPlantEquipment2017-07-012018-06-30SC109767bus:OrdinaryShareClass12017-07-012018-06-30SC109767bus:OrdinaryShareClass12018-06-30SC109767bus:PrivateLimitedCompanyLtd2017-07-012018-06-30SC109767bus:FRS1022017-07-012018-06-30SC109767bus:AuditExemptWithAccountantsReport2017-07-012018-06-30SC109767bus:SmallCompaniesRegimeForAccounts2017-07-012018-06-30SC109767bus:Director12017-07-012018-06-30SC109767bus:Director32017-07-012018-06-30SC109767bus:CompanySecretary12017-07-012018-06-30SC109767bus:FullAccounts2017-07-012018-06-30xbrli:purexbrli:sharesiso4217:GBP