Merit Engineering Limited 02701668 false 2022-04-01 2023-03-31 2023-03-31 The principal activity of the company is General Engineering Digita Accounts Production Advanced 6.30.9574.0 true true 02701668 2022-04-01 2023-03-31 02701668 2023-03-31 02701668 bus:Director1 1 2023-03-31 02701668 bus:Revised 2023-03-31 02701668 core:CurrentFinancialInstruments 2023-03-31 02701668 core:CurrentFinancialInstruments core:WithinOneYear 2023-03-31 02701668 core:Non-currentFinancialInstruments 2023-03-31 02701668 core:Non-currentFinancialInstruments core:AfterOneYear 2023-03-31 02701668 core:FurnitureFittingsToolsEquipment 2023-03-31 02701668 core:MotorVehicles 2023-03-31 02701668 core:OtherPropertyPlantEquipment 2023-03-31 02701668 bus:SmallEntities 2022-04-01 2023-03-31 02701668 bus:AuditExemptWithAccountantsReport 2022-04-01 2023-03-31 02701668 bus:FullAccounts 2022-04-01 2023-03-31 02701668 bus:SmallCompaniesRegimeForAccounts 2022-04-01 2023-03-31 02701668 bus:RegisteredOffice 2022-04-01 2023-03-31 02701668 bus:CompanySecretaryDirector2 2022-04-01 2023-03-31 02701668 bus:Director1 2022-04-01 2023-03-31 02701668 bus:Director1 1 2022-04-01 2023-03-31 02701668 bus:PrivateLimitedCompanyLtd 2022-04-01 2023-03-31 02701668 core:FurnitureFittingsToolsEquipment 2022-04-01 2023-03-31 02701668 core:MotorVehicles 2022-04-01 2023-03-31 02701668 core:OtherPropertyPlantEquipment 2022-04-01 2023-03-31 02701668 core:VehiclesPlantMachinery 2022-04-01 2023-03-31 02701668 countries:AllCountries 2022-04-01 2023-03-31 02701668 2022-03-31 02701668 bus:Director1 1 2022-03-31 02701668 core:FurnitureFittingsToolsEquipment 2022-03-31 02701668 core:MotorVehicles 2022-03-31 02701668 core:OtherPropertyPlantEquipment 2022-03-31 02701668 2021-04-01 2022-03-31 02701668 2022-03-31 02701668 bus:Director1 1 2022-03-31 02701668 core:CurrentFinancialInstruments 2022-03-31 02701668 core:CurrentFinancialInstruments core:WithinOneYear 2022-03-31 02701668 core:Non-currentFinancialInstruments 2022-03-31 02701668 core:Non-currentFinancialInstruments core:AfterOneYear 2022-03-31 02701668 core:FurnitureFittingsToolsEquipment 2022-03-31 02701668 core:MotorVehicles 2022-03-31 02701668 core:OtherPropertyPlantEquipment 2022-03-31 02701668 bus:Director1 1 2021-04-01 2022-03-31 02701668 bus:Director1 1 2021-03-31 iso4217:GBP xbrli:pure

Registration number: 02701668

Merit Engineering Limited

Unaudited Filleted Financial Statements

for the Year Ended 31 March 2023

 

Merit Engineering Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

3 to 9

 

Merit Engineering Limited

Company Information

Directors

Mr. Kevin John Alford

Mrs G Alford

Company secretary

Mrs G Alford

Registered office

4 High Street
Pontardawe
Swansea
West Glamorgan
SA8 4HU

Accountants

Fergusons and Peters
4 High Street
Pontardawe
Swansea
West Glamorgan
SA8 4HU

 

Merit Engineering Limited

(Registration number: 02701668)
Balance Sheet as at 31 March 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

42,257

55,672

Current assets

 

Stocks

5

104,113

100,427

Debtors

6

189,560

184,102

Cash at bank and in hand

 

584,061

555,247

 

877,734

839,776

Creditors: Amounts falling due within one year

7

(154,019)

(129,744)

Net current assets

 

723,715

710,032

Total assets less current liabilities

 

765,972

765,704

Creditors: Amounts falling due after more than one year

7

(38,409)

(48,268)

Net assets

 

727,563

717,436

Capital and reserves

 

Called up share capital

8

2

2

Retained earnings

727,561

717,434

Shareholders' funds

 

727,563

717,436

For the financial year ending 31 March 2023 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. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 17 October 2023 and signed on its behalf by:
 

.........................................
Mr. Kevin John Alford
Director

 

Merit Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

1

General information

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

The address of its registered office is:
4 High Street
Pontardawe
Swansea
West Glamorgan
SA8 4HU

These financial statements were authorised for issue by the Board on 17 October 2023.

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).The financial statements have been prepared under the historical cost convention and in accordance with FRS 105 'The Financial Reporting Standard applicable to the Micro-entities 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.

Going concern

The financial statements have been prepared on a going concern basis.

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.

 

Merit Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

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

Vehicles, plant and machinery

25% reducing balance method

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

 

Merit Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

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 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.

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.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 12 (2022 - 16).

 

Merit Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

4

Tangible assets

Furniture, fittings and equipment
 £

Motor vehicles
 £

Other tangible assets
£

Total
£

Cost or valuation

At 1 April 2022

15,502

49,525

119,131

184,158

Additions

-

-

522

522

At 31 March 2023

15,502

49,525

119,653

184,680

Depreciation

At 1 April 2022

14,963

32,526

80,997

128,486

Charge for the year

136

4,249

9,552

13,937

At 31 March 2023

15,099

36,775

90,549

142,423

Carrying amount

At 31 March 2023

403

12,750

29,104

42,257

At 31 March 2022

539

16,999

38,134

55,672

5

Stocks

2023
£

2022
£

Work in progress

98,188

95,557

Other inventories

5,925

4,870

104,113

100,427

6

Debtors

Current

2023
£

2022
£

Trade debtors

166,386

168,238

Prepayments

20,500

-

Other debtors

2,674

15,864

 

189,560

184,102

7

Creditors

Creditors: amounts falling due within one year

 

Merit Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

9

9,606

17,342

Trade creditors

 

81,992

91,066

Taxation and social security

 

53,429

18,486

Other creditors

 

8,992

2,850

 

154,019

129,744

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

9

38,409

48,268

8

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary Shares of £1 each

2

2

2

2

         

9

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Other borrowings

38,409

48,268

10

Dividends

Interim dividends paid

   

2023
£

 

2022
£

Interim dividend of 1.00 per each Ordinary Share

 

53,500

 

12,000

         

11

Related party transactions

 

Merit Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

Transactions with directors

2023

At 1 April 2022
£

Other payments made to company by director
£

At 31 March 2023
£

Mr. Kevin John Alford

Directors loan interest free

(90)

14

(76)

       
     

 

2022

At 1 April 2021
£

Advances to director
£

Other payments made to company by director
£

At 31 March 2022
£

Mr. Kevin John Alford

Directors loan interest free

(36)

12,000

(12,054)

(90)

         
       

 

 

Merit Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

44,582

42,120

Contributions paid to money purchase schemes

6,000

50,000

50,582

92,120