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Registration number: 1450904

Mount Engraving Tools Limited
Annual Report and
Unaudited Financial Statements

30 November 2021

 

Mount Engraving Tools Limited

Contents

Balance Sheet

1 to 2

Notes to the Unaudited Financial Statements

3 to 10

 

Mount Engraving Tools Limited

Balance Sheet
30 November 2021

Note

2021
£

2020
£

Fixed assets

 

Intangible assets

4

11,702

15,277

Tangible assets

5

62,628

75,233

 

74,330

90,510

Current assets

 

Stocks

6

11,141

11,728

Debtors

7

224,021

194,332

Cash at bank and in hand

 

213,627

252,302

 

448,789

458,362

Creditors: Amounts falling due within one year

8

(123,796)

(167,545)

Net current assets

 

324,993

290,817

Total assets less current liabilities

 

399,323

381,327

Provisions for liabilities

(11,641)

(14,565)

Net assets

 

387,682

366,762

Capital and reserves

 

Called up share capital

9

4,856

4,856

Share premium reserve

1,179

1,179

Capital redemption reserve

2,428

2,428

Profit and loss account

379,219

358,299

Shareholders' funds

 

387,682

366,762

 

Mount Engraving Tools Limited

Balance Sheet
30 November 2021

For the financial year ending 30 November 2021 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 15 August 2022 and signed on its behalf by:
 

.........................................
Mr D K Boon
Director

Company Registration Number: 1450904

 

Mount Engraving Tools Limited

Notes to the Unaudited Financial Statements
Year Ended 30 November 2021

1

General information

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

The address of its registered office is:
Unit 44
Touchet Hall Road
Stakehill Industrial Estate
Middleton
M24 2FL

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.

Government grants

Government grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected useful lives of the relevant assets by equal annual instalments. Grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate.

 

Mount Engraving Tools Limited

Notes to the Unaudited Financial Statements
Year Ended 30 November 2021

Tax

The tax expense for the period comprises current and deferred 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.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet 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.

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 & Machinery

15% Reducing Balance

Fixtures & Fittings

15% Reducing Balance

Motor Vehicles

25% Reducing Balance

Computer Equipment

33.33% Straight Line

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

 

Mount Engraving Tools Limited

Notes to the Unaudited Financial Statements
Year Ended 30 November 2021

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

5% Straight Line

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.

Borrowings

 

Mount Engraving Tools Limited

Notes to the Unaudited Financial Statements
Year Ended 30 November 2021

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

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.

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.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Mount Engraving Tools Limited

Notes to the Unaudited Financial Statements
Year Ended 30 November 2021

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 8 (2020 - 8).

 

Mount Engraving Tools Limited

Notes to the Unaudited Financial Statements
Year Ended 30 November 2021

4

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 December 2020

71,500

71,500

At 30 November 2021

71,500

71,500

Amortisation

At 1 December 2020

56,223

56,223

Amortisation charge

3,575

3,575

At 30 November 2021

59,798

59,798

Carrying amount

At 30 November 2021

11,702

11,702

At 30 November 2020

15,277

15,277

5

Tangible assets

Fixtures and fittings
£

Motor vehicles
 £

Other tangible assets
 £

Total
£

Cost or valuation

At 1 December 2020

20,737

24,895

336,977

382,609

At 30 November 2021

20,737

24,895

336,977

382,609

Depreciation

At 1 December 2020

19,038

12,659

275,679

307,376

Charge for the year

351

3,059

9,195

12,605

At 30 November 2021

19,389

15,718

284,874

319,981

Carrying amount

At 30 November 2021

1,348

9,177

52,103

62,628

At 30 November 2020

1,699

12,236

61,298

75,233

 

Mount Engraving Tools Limited

Notes to the Unaudited Financial Statements
Year Ended 30 November 2021

6

Stocks

2021
£

2020
£

Work in progress

7,499

7,894

Other inventories

3,642

3,834

11,141

11,728

7

Debtors

2021
£

2020
£

Trade debtors

207,543

183,160

Other debtors

16,478

11,172

224,021

194,332

8

Creditors

Creditors: amounts falling due within one year

Note

2021
£

2020
£

Due within one year

 

Loans and borrowings

10

-

2,327

Trade creditors

 

48,612

78,189

Taxation and social security

 

64,528

58,176

Accruals and deferred income

 

10,409

9,756

Other creditors

 

247

19,097

 

123,796

167,545

9

Share capital

Allotted, called up and fully paid shares

 

2021

2020

 

No.

£

No.

£

Ordinary shares of £1 each

7,284

7,284

7,284

7,284

         
 

Mount Engraving Tools Limited

Notes to the Unaudited Financial Statements
Year Ended 30 November 2021

10

Loans and borrowings

2021
£

2020
£

Current loans and borrowings

Hire purchase contracts

-

2,327

11

Related party transactions

Directors' remuneration

The directors are remunerated by the company. The directors consider that their remuneration meets the criteria of being under normal market conditions.