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Registration number: 6405798

Advanced Machinery Services Ltd

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2021

 

Advanced Machinery Services Ltd

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Unaudited Financial Statements

4 to 11

 

Advanced Machinery Services Ltd

Company Information

Directors

Mr Steve McGloin

Mr Gary Lane

Mr Steve Foster

Company secretary

Mr Steve Foster

Registered office

Skeffington Mill
Uppingham Road
Skeffington
Leicester
Leicestershire
LE7 9YE

Accountants

Max Accountants Ltd
Ketton Suite
The King Centre
Barleythorpe
Rutland
LE15 7WD

 

Advanced Machinery Services Ltd

(Registration number: 6405798)
Balance Sheet as at 31 December 2021

Note

2021
£

2020
£

Fixed assets

 

Tangible assets

6

89,737

44,469

Current assets

 

Stocks

7

1,362,171

695,062

Debtors

8

613,070

426,053

Cash at bank and in hand

 

756,604

830,373

 

2,731,845

1,951,488

Creditors: Amounts falling due within one year

9

(1,335,475)

(747,484)

Net current assets

 

1,396,370

1,204,004

Total assets less current liabilities

 

1,486,107

1,248,473

Creditors: Amounts falling due after more than one year

9

-

(45,000)

Provisions for liabilities

(39,157)

(25,386)

Net assets

 

1,446,950

1,178,087

Capital and reserves

 

Called up share capital

10

300

300

Retained earnings

1,446,650

1,177,787

Shareholders' funds

 

1,446,950

1,178,087

For the financial year ending 31 December 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 8 September 2022 and signed on its behalf by:
 

 

Advanced Machinery Services Ltd

(Registration number: 6405798)
Balance Sheet as at 31 December 2021

.........................................
Mr Steve Foster
Company secretary and director

 

Advanced Machinery Services Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

1

General information

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

The address of its registered office is:
Skeffington Mill
Uppingham Road
Skeffington
Leicester
Leicestershire
LE7 9YE

These financial statements were authorised for issue by the Board on 8 September 2022.

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 smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

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.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

 

Advanced Machinery Services Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 December 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

Motor vehicles

25% on cost

Fixtures and fittings

33% on cost

Plant and machinery

33% on cost

Leasehold improvements

20% on cost

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.

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

Straight line over 7 years

Patents and licences

Straight line over 5 years

 

Advanced Machinery Services Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

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

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.

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

Advanced Machinery Services Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 27 (2020 - 25).

4

Taxation

Tax charged/(credited) in the income statement

2021
 £

2020
 £

Current taxation

UK corporation tax

124,896

66,947

Deferred taxation

Arising from write-down or reversal of write-down of deferred tax asset

5,384

(2,183)

Tax expense in the income statement

130,280

64,764

Deferred tax

 

Advanced Machinery Services Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

5

Intangible assets

Goodwill
 £

Trademarks, patents and licenses
 £

Total
£

Cost or valuation

At 1 January 2021

2,674

124,461

127,135

At 31 December 2021

2,674

124,461

127,135

Amortisation

At 1 January 2021

2,674

124,461

127,135

At 31 December 2021

2,674

124,461

127,135

Carrying amount

At 31 December 2021

-

-

-

6

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Other tangible assets
£

Total
£

Cost or valuation

At 1 January 2021

1,733

89,733

157,528

81,912

330,906

Additions

-

4,912

56,865

16,000

77,777

Disposals

-

-

(54,684)

-

(54,684)

At 31 December 2021

1,733

94,645

159,709

97,912

353,999

Depreciation

At 1 January 2021

1,733

76,330

134,325

74,049

286,437

Charge for the year

-

8,772

17,168

6,570

32,510

Eliminated on disposal

-

-

(54,685)

-

(54,685)

At 31 December 2021

1,733

85,102

96,808

80,619

264,262

Carrying amount

At 31 December 2021

-

9,543

62,901

17,293

89,737

At 31 December 2020

-

13,403

23,203

7,863

44,469

 

Advanced Machinery Services Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

7

Stocks

2021
£

2020
£

Other inventories

1,362,171

695,062

8

Debtors

Current

2021
£

2020
£

Trade debtors

475,041

414,159

Prepayments

138,029

11,894

 

613,070

426,053

 

Advanced Machinery Services Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

9

Creditors

Creditors: amounts falling due within one year

Note

2021
£

2020
£

Due within one year

 

Loans and borrowings

11

-

5,000

Trade creditors

 

284,534

295,573

Taxation and social security

 

234,723

163,972

Accruals and deferred income

 

512,640

176,310

Other creditors

 

303,578

106,629

 

1,335,475

747,484

Creditors: amounts falling due after more than one year

Note

2021
£

2020
£

Due after one year

 

Loans and borrowings

11

-

45,000

10

Share capital

Allotted, called up and fully paid shares

 

2021

2020

 

No.

£

No.

£

Ordinary shares of £1 each

300

300

300

300

         

11

Loans and borrowings

2021
£

2020
£

Non-current loans and borrowings

Bank borrowings - BounceBack Loan

-

45,000

2021
£

2020
£

Current loans and borrowings

Bank borrowings - BounceBack Loan

-

5,000

The Bounce Back Loan was repaid in full within the year on 29th June 2021.

 

Advanced Machinery Services Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

12

Dividends

   

2021

 

2020

   

£

 

£

Interim dividend of £983.33 (2020 - £477.78) per ordinary share

 

295,000

 

143,333