REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2021 |
FOR |
MIDWEST FORMWORK UK LTD |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2021 |
FOR |
MIDWEST FORMWORK UK LTD |
MIDWEST FORMWORK UK LTD (REGISTERED NUMBER: 07074661) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 |
Income Statement | 9 |
Other Comprehensive Income | 10 |
Statement of Financial Position | 11 |
Statement of Changes in Equity | 12 |
Statement of Cash Flows | 13 |
Notes to the Statement of Cash Flows | 14 |
Notes to the Financial Statements | 15 |
MIDWEST FORMWORK UK LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Certified Accountants |
& Statutory Auditors |
187 High Road Leyton |
London |
E15 2BY |
MIDWEST FORMWORK UK LTD (REGISTERED NUMBER: 07074661) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
The directors present their strategic report for the year ended 30 November 2021. |
REVIEW OF BUSINESS |
The financial year ended 30 November 2021 saw a slight decrease in revenue to £12.17m (2020 : £16.04m). Our cash reserves also declined to £0.72m (2020 : £3.89m). Market conditions remain very competitive and with the added complexity of COVID-19 and post-Brexit. |
We continually look for operational efficiencies across the business through effective use of our investment in our IT platforms, processes, and quality management systems. We have invested heavily in the research and development to optimise the construction processes and develop our processes for operational efficiencies across the business.The company's vision, mission and values statements continue to reflect the ever dynamic outlook of construction industry and filtered throughout the organisation. The company has always empathised with the need for adhering to its corporate social responsibilities in the heart of all its operations. Midwest is firmly committed to its social, economic and environmental sustainability. |
Covid-19 Update |
The well-being of the Company's workforce, customers and local communities remains a key priority. Effective |
Covid-19 safe operating procedures, maintaining social distancing rules, are fully embedded across all operations. |
Throughout the initial national lockdown period, we retained all of our staff on full pay, without recourse to Government assistance, and provided necessary support to our suppliers and subcontractors to ensure operational continuity and enable a safe and structured re-start to site operations. We are well prepared for this second lockdown and continue to work with our subcontractors and supply chain to maintain the Group's operations. We remain mindful, however, of the potential for further disruption from additional Government mandated measures to control the pandemic and the impact of ongoing uncertainty on the UK economy. |
Outlook |
The outlook is positive. We have a solid pipeline of confirmed contracts. Our strategic focus is aimed at meeting our clients' expectations and providing them with the quality service. Potential medium-term risks to demand associated with Covid-19, rising unemployment and Brexit remain but long-term construction market fundamentals continue to be strong. Midwest is well placed to navigate potential future challenges and deliver superior long-term sustainable returns. |
PRINCIPAL RISKS AND UNCERTAINTIES |
There are a number of potential risks and and uncertainties which could impact the company's performance and these are considered by the board on regular basis.The Board of Directors and the relevant management terms consider the risks of all significant business decisions and changes in the external environment and in the company's operations. The key risks affecting the business are as follows: |
Operating Risk |
The company's reputation and continued success depends on its ability to provide services which are valued by its clients. The company regularly reviews the quality of its services both internally and through formalised client feedback and evaluation. |
Market Risk |
The company operates in a specialised market and seeks to maintain a competitive advantage by offering an appropriate and relevant service range and providing a high level of client service from professional and dedicated staff.The company manages market risk by providing added value services to its customers. |
MIDWEST FORMWORK UK LTD (REGISTERED NUMBER: 07074661) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
PRINCIPAL RISKS AND UNCERTAINTIES (CONTD) |
Management Risk |
The company is reliant on its high calibre team of operational managers and surveyors and board of directors. The company recruits and develops high calibre employees, many of whom have been with the company for a number of years. The board have tried to ensure that the knowledge base of the operational management team is shared as much as possible throughout the company. |
Financial Risk |
The company is principally funded from retained profits and is reliant on converting these profits into cash. Financial monitoring, forecasting and planning are continuous processes and emphasis is placed on balancing maintenance or growth of profit margin against investment in resources to maintain delivery of a high quality of service to its clients. |
Economic risk |
The directors have identified and evaluated risks and uncertainties and have controls in place to mitigate these. Responsibility for management of each key risk is identified and delegated. The company is exposed to the risks of the economic downturn that could lower the company's revenues and operating results in the future. However, actions continue to be taken to maximise the company's performance in alt aspects of the business. |
Post Brexit |
The impact of post-Brexit continues to create economic uncertainty across the UK and Ireland. The Company continues to monitor the risks and the impact that this will have in relation to our business environment including any regulatory changes and the potential financial impact. |
Health And Safety |
The Company's activities require the continuous monitoring and management of health, safety and environmental risks.The Company is committed to ensuring a safe working environment. These risks are managed by the Company through the strong promotion of a health and safety culture and well-defined health and safety policies and procedures. |
Environment |
The company recognises the importance of its environmental responsibilities, monitors its impact on the environment and designs and implements policies to reduce any damage that might be caused by the company's activities. Initiatives designed to minimise the company's impact on the environment include safe disposal of any product waste, recycling and reducing energy consumption. |
Disabled employees |
Disabled persons are employed by the company where a suitable vacancy occurs. The aptitudes and abilities of disabled persons are not easily met in those aspects of our business involving site work, however, they are given full and fair consideration where vacancies arise in more suitable areas. Every effort is made to ensure that employees who become injured or disabled in the course of their employment are given training so that they can continue employment with the company |
ON BEHALF OF THE BOARD: |
12 August 2022 |
MIDWEST FORMWORK UK LTD (REGISTERED NUMBER: 07074661) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
The directors present their report with the financial statements of the company for the year ended 30 November 2021. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of concrete formwork. |
DIVIDENDS |
No dividends were paid during the current year and none was paid in previous year. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 December 2020 to the date of this report. |
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). 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. |
AUDITORS |
The auditors, Ashford Louis, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MIDWEST FORMWORK UK LTD |
Opinion |
We have audited the financial statements of Midwest Formwork UK Ltd (the 'company') for the year ended 30 November 2021 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30 November 2021 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 |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
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, except to the extent otherwise explicitly stated in our report, 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 we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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. |
Opinions 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MIDWEST FORMWORK UK LTD |
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 four, 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MIDWEST FORMWORK UK LTD |
Auditors' 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- We obtained an understanding of the legal and regulatory requirements applicable to the company. |
- We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance. |
- We inquired from management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations. We designed our audit procedures to identify instances of non-compliance throughout the audit and remained alert to instances of non-compliance throughout the audit. |
- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance. |
Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. However, the primary responsibility for prevention and detection of fraud rests with both management and those charged with governance of the company. |
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: |
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control. |
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. |
- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern. |
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation (ie. gives a true and fair view). |
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MIDWEST FORMWORK UK LTD |
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 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. |
for and on behalf of |
Chartered Certified Accountants |
& Statutory Auditors |
187 High Road Leyton |
London |
E15 2BY |
MIDWEST FORMWORK UK LTD (REGISTERED NUMBER: 07074661) |
INCOME STATEMENT |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
30.11.21 | 30.11.20 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
2,169,964 | 1,646,404 |
(68,893 | ) | 633,086 |
Other operating income |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
52,583 | 709,703 |
Interest payable and similar expenses | 6 |
(LOSS)/PROFIT BEFORE TAXATION | ( |
) |
Tax on (loss)/profit | 7 | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
MIDWEST FORMWORK UK LTD (REGISTERED NUMBER: 07074661) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
30.11.21 | 30.11.20 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
MIDWEST FORMWORK UK LTD (REGISTERED NUMBER: 07074661) |
STATEMENT OF FINANCIAL POSITION |
30 NOVEMBER 2021 |
30.11.21 | 30.11.20 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors | 11 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
13 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 15 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Retained earnings | 17 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
MIDWEST FORMWORK UK LTD (REGISTERED NUMBER: 07074661) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 December 2019 |
Changes in equity |
Total comprehensive income | - |
Balance at 30 November 2020 |
Changes in equity |
Total comprehensive income | - |
Balance at 30 November 2021 |
MIDWEST FORMWORK UK LTD (REGISTERED NUMBER: 07074661) |
STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
30.11.21 | 30.11.20 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Capital repayments in year | ( |
) |
Net cash from financing activities | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
4,499,694 |
Cash and cash equivalents at end of year | 2 | 724,717 | 3,885,483 |
MIDWEST FORMWORK UK LTD (REGISTERED NUMBER: 07074661) |
NOTES TO THE STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
30.11.21 | 30.11.20 |
£ | £ |
(Loss)/profit before taxation | ( |
) |
Depreciation charges |
Finance costs | 95,547 | 118,745 |
Finance income | (21,476 | ) | (20,996 | ) |
232,820 | 810,456 |
(Increase)/decrease in stocks | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Decrease in trade and other creditors | ( |
) | ( |
) |
Cash generated from operations | ( |
) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 30 November 2021 |
30.11.21 | 1.12.20 |
£ | £ |
Cash and cash equivalents | 724,717 | 3,885,483 |
Year ended 30 November 2020 |
30.11.20 | 1.12.19 |
£ | £ |
Cash and cash equivalents | 3,885,483 | 4,499,694 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
Other |
non-cash |
At 1.12.20 | Cash flow | changes | At 30.11.21 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 3,885,483 | (3,160,766 | ) | 724,717 |
3,885,483 | ( |
) | 724,717 |
Debt |
Finance leases | (30,262 | ) | 21,988 | - | (35,856 | ) |
(30,262 | ) | 21,988 | - | (35,856 | ) |
Total | 3,855,221 | (3,138,778 | ) | - | 688,861 |
MIDWEST FORMWORK UK LTD (REGISTERED NUMBER: 07074661) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
1. | STATUTORY INFORMATION |
Midwest Formwork UK Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover represents net invoiced value of goods and services supplied, excluding value added tax. The total turnover of the company for the year has been derived from the supply of goods and services falling within the company's principal activities. Retentions recognition is deferred until their receipt become virtually certain. |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. |
An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss. |
Government grants |
Government grants received are credited to income and relevant portion credited deferred income where applicable. Grants towards capital expenditure are released to the income statement over the expected useful life of the assets. Grants received towards revenue expenditure are released to the income statement as the related expenditure is incurred. |
Stocks |
Work in progress is valued at the lower of cost and net realisable value. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
MIDWEST FORMWORK UK LTD (REGISTERED NUMBER: 07074661) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company only enters into basic financial instrument transitions that results in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from bank and other third parties, loans to relate to parties and investments in ordinary shares. |
Debt instruments (other than those wholly repayable or receivable within one year) including loans and other accounts receivables and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest rate method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or order consideration expected to be paid or received. However, if the arrangements of a short term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at the market rates of interest for a similar debt instrument and subsequently at amortised cost, unless it quantifies as a loan from a director in the case of a small company or a public benefit entity concessionary loan. |
Financial assets that are measured at cost and amortised are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the assets if it were to be sold at the reporting date. |
Financial assets and liabilities are offsets and the net amount reported in the Statement of Financial Position where there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the assets and settle the liability simultaneously. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
MIDWEST FORMWORK UK LTD (REGISTERED NUMBER: 07074661) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
3. | TURNOVER |
The total Turnover of the Company for the year has been derived from the Company's principal activity wholly undertaken in the UK. Sale of goods and services £12,166,203 (2020 : £16,035,786). |
4. | EMPLOYEES AND DIRECTORS |
30.11.21 | 30.11.20 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
30.11.21 | 30.11.20 |
Management | 3 | 3 |
Admin & Production | 12 | 13 |
30.11.21 | 30.11.20 |
£ | £ |
Directors' remuneration |
Information regarding the highest paid director is as follows: |
30.11.21 | 30.11.20 |
£ | £ |
Emoluments etc |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
30.11.21 | 30.11.20 |
£ | £ |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Auditors' remuneration |
Foreign exchange differences | ( |
) |
MIDWEST FORMWORK UK LTD (REGISTERED NUMBER: 07074661) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.11.21 | 30.11.20 |
£ | £ |
Interest payable |
Hire purchase |
7. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
30.11.21 | 30.11.20 |
£ | £ |
Current tax: |
UK corporation tax | ( |
) |
Deferred tax | ( |
) |
Tax on (loss)/profit | ( |
) |
UK corporation tax has been charged at 19% (2020 - 19%). |
Reconciliation of total tax (credit)/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: |
30.11.21 | 30.11.20 |
£ | £ |
(Loss)/profit before tax | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances | - |
Utilisation of tax losses | ( |
) |
Non-taxable R&D credit received | (214,168 | ) | - |
Deferred tax | 5,177 | (12,224 | ) |
Total tax (credit)/charge | (208,991 | ) | 111,078 |
8. | GOING CONCERN |
The Company meets its day to day working capital requirements and has significant cash reserves at year end. The company's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Company should be able to operate without the need for external facilities for the foreseeable future. Even with the coronavirus having a huge impact on human society and the economy, the Directors have a reasonable expectation and are optimistic that with the healthy financial position of the company, the company will continue in operational existence for the next foreseeable future. |
MIDWEST FORMWORK UK LTD (REGISTERED NUMBER: 07074661) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
9. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 December 2020 |
Additions |
At 30 November 2021 |
DEPRECIATION |
At 1 December 2020 |
Charge for year |
At 30 November 2021 |
NET BOOK VALUE |
At 30 November 2021 |
At 30 November 2020 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 December 2020 |
Additions |
At 30 November 2021 |
DEPRECIATION |
At 1 December 2020 |
Charge for year |
At 30 November 2021 |
NET BOOK VALUE |
At 30 November 2021 |
At 30 November 2020 |
Included in cost of land and buildings is freehold land of £ 3,510,818 (2020 - £ 3,510,818 ) which is not depreciated. |
MIDWEST FORMWORK UK LTD (REGISTERED NUMBER: 07074661) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
9. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 December 2020 |
Additions |
Transfer to ownership | (21,667 | ) |
At 30 November 2021 |
DEPRECIATION |
At 1 December 2020 |
Charge for year |
Transfer to ownership | (12,526 | ) |
At 30 November 2021 |
NET BOOK VALUE |
At 30 November 2021 |
At 30 November 2020 |
10. | STOCKS |
30.11.21 | 30.11.20 |
£ | £ |
Work-in-progress |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.11.21 | 30.11.20 |
£ | £ |
Trade debtors |
Retentions | 478,521 | 944,882 |
Other debtors |
VAT |
Accrued income |
Prepayments |
MIDWEST FORMWORK UK LTD (REGISTERED NUMBER: 07074661) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.11.21 | 30.11.20 |
£ | £ |
Hire purchase contracts (see note 14) |
Trade creditors |
Tax |
Social security and other taxes |
Pension liabilities | 4,261 | 4,039 |
VAT | - | 249,342 |
Other creditors |
Accrued expenses |
Holiday pay accrued | 11,240 | 11,868 |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
30.11.21 | 30.11.20 |
£ | £ |
Hire purchase contracts (see note 14) |
14. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
30.11.21 | 30.11.20 |
£ | £ |
Gross obligations repayable: |
Within one year |
Between one and five years |
Finance charges repayable: |
Within one year |
Between one and five years |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
30.11.21 | 30.11.20 |
£ | £ |
Within one year |
MIDWEST FORMWORK UK LTD (REGISTERED NUMBER: 07074661) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
15. | PROVISIONS FOR LIABILITIES |
30.11.21 | 30.11.20 |
£ | £ |
Deferred tax | 29,669 | 24,492 |
Deferred |
tax |
£ |
Balance at 1 December 2020 |
Provided during year |
Balance at 30 November 2021 |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.11.21 | 30.11.20 |
value: | £ | £ |
Ordinary | £1 | 2 | 2 |
17. | RESERVES |
Retained |
earnings |
£ |
At 1 December 2020 |
Profit for the year |
At 30 November 2021 |
18. | PENSION COMMITMENTS |
The company operates a define contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost and charge represents contribution payable by the company to the fund and amounted to £24,222 (2020 : £21,008). There were no accrued or prepaid contribution at the current and previous year end. |
MIDWEST FORMWORK UK LTD (REGISTERED NUMBER: 07074661) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2021 |
19. | RELATED PARTY DISCLOSURES |
During the year, Midwest Formwork & Reinforcing Limited (Ireland) provided equipment rental services totalling £670,419 (2020 : £1,003,648) at a commercial rate to the company. At the balance sheet date, the company was owed £97,360 (2020 : £422,889 was owed to) by Midwest Formwork & Reinforcing Limited (Ireland). |
During the year the company purchased goods and services totalling £1,245,269 (2020 : £2,088,893) from Midwest Precast Limited and received rent totalling £100,000 (2020 : £50,000) from same company. At the balance sheet date, the company owed £1,133,603 (2020 : £558,319) to the Midwest Precast Limited. |
At the balance sheet date the company was owed £701,081 (2020 : £682,318) by Midwest Civil Engineering Limited, this relates to costs paid by the Company for and on behalf of Midwest Civil Engineering Limited. |
These four companies are connected by a common ownership. |
At the balance sheet date, the company owed £2,257,765 (2020 : £2,204,143) to Mr J Corcoran, a close associate of the directors. |
These intercompany balances attract interest at a commercial rate. |
20. | ULTIMATE CONTROLLING PARTY |
The company is wholly owned subsidiary of Midwest Formwork Holding Limited, a company registered in Ireland. |