Company Registration No. 11305837 (England and Wales)
MB Scaffolding Ltd
Unaudited financial statements
for the year ended 31 March 2023
Pages for filing with the registrar
MB Scaffolding Ltd
Contents
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 8
MB Scaffolding Ltd
Statement of financial position
As at 31 March 2023
1
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
1,389,044
896,694
Current assets
Debtors
4
375,640
243,090
Cash at bank and in hand
206,403
177,190
582,043
420,280
Creditors: amounts falling due within one year
5
(532,985)
(600,292)
Net current assets/(liabilities)
49,058
(180,012)
Total assets less current liabilities
1,438,102
716,682
Creditors: amounts falling due after more than one year
6
(426,898)
(531,398)
Provisions for liabilities
(121,965)
Net assets
889,239
185,284
Capital and reserves
Called up share capital
392
392
Profit and loss reserves
888,847
184,892
Total equity
889,239
185,284
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 31 March 2023 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.
MB Scaffolding Ltd
Statement of financial position (continued)
As at 31 March 2023
2
The financial statements were approved by the board of directors and authorised for issue on 20 November 2023 and are signed on its behalf by:
Philippa Burrows
Director
Company Registration No. 11305837
MB Scaffolding Ltd
Notes to the financial statements
For the year ended 31 March 2023
3
1
Accounting policies
Company information
MB Scaffolding Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Millstream Works Station Road, Wickwar, Wotton-Under-Edge, Gloucestershire, England, GL12 8NB.
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 £1.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for the supply and erection of scaffolding, as provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Revenue is recognised systematically over the period of scaffold provision.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
20% straight line basis
Computers
33% straight line basis
Motor vehicles
33%/20% straight line basis
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. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Recoverable amount is the higher of fair value less costs to sell and value in use.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount, and an impairment loss is recognised immediately in profit or loss.
MB Scaffolding Ltd
Notes to the financial statements (continued)
For the year ended 31 March 2023
1
Accounting policies (continued)
4
1.5
Cash and cash equivalents
Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.
1.6
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 statement of financial position 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, 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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
MB Scaffolding Ltd
Notes to the financial statements (continued)
For the year ended 31 March 2023
1
Accounting policies (continued)
5
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.
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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.
1.9
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss 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 leases asset are consumed.
MB Scaffolding Ltd
Notes to the financial statements (continued)
For the year ended 31 March 2023
1
Accounting policies (continued)
6
1.12
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Employees
The average monthly number of persons employed by the company during the year was 50 (2022 - 39).
2023
2022
Number
Number
Total
50
39
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2022
1,980,352
Additions
866,309
Disposals
(3,196)
At 31 March 2023
2,843,465
Depreciation and impairment
At 1 April 2022
1,083,658
Depreciation charged in the year
373,127
Eliminated in respect of disposals
(2,364)
At 31 March 2023
1,454,421
Carrying amount
At 31 March 2023
1,389,044
At 31 March 2022
896,694
MB Scaffolding Ltd
Notes to the financial statements (continued)
For the year ended 31 March 2023
7
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
374,870
203,049
Other debtors
770
11,571
375,640
214,620
Deferred tax asset
28,470
375,640
243,090
5
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
112,507
118,333
Trade creditors
87,948
66,485
Taxation and social security
62,956
39,250
Other creditors
269,574
376,224
532,985
600,292
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
407,204
506,945
Taxation and social security
7,778
5,407
Other creditors
11,916
19,046
426,898
531,398
7
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
8,467
9,805
In two to five years
11,916
19,046
20,383
28,851
Included within creditors are hire purchase loans amounting to £20,383 (2022: £28,851) which are secured by fixed charges over those assets the loans relate to. As at the year end those assets had a net book value of £21,214 (2022: £31,563).
MB Scaffolding Ltd
Notes to the financial statements (continued)
For the year ended 31 March 2023
8
8
Financial commitments, guarantees and contingent liabilities
The company is party to an Omnibus Guarantee and Set-Off Agreement in favour of the company's bankers in respect of the following related companies, Matt Burrows Construction Ltd and M & PB Holdings Ltd. As at 31 March 2023 the potential liability was £Nil (2022: £Nil).
9
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
157,426
171,386