Mareth Fabrications Limited
Unaudited Financial Statements
For the year ended 30 November 2022
Pages for Filing with Registrar
Company Registration No. 02872764 (England and Wales)
Mareth Fabrications Limited
Company Information
Director
L.J. Maher
Company number
02872764
Registered office
The Shipping Building
The Old Vinyl Factory
Blyth Road
Hayes
London
UB3 1HA
Accountants
Moore Kingston Smith LLP
The Shipping Building
The Old Vinyl Factory
Blyth Road
Hayes
London
UB3 1HA
Mareth Fabrications Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
Mareth Fabrications Limited
Balance Sheet
As at 30 November 2022
Page 1
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
3
83,613
23,215
Current assets
Stock
52,000
115,149
Debtors
4
289,677
447,152
Cash at bank and in hand
103,820
45,435
445,497
607,736
Creditors: amounts falling due within one year
5
(280,190)
(324,042)
Net current assets
165,307
283,694
Total assets less current liabilities
248,920
306,909
Creditors: amounts falling due after more than one year
6
(33,332)
(43,333)
Provisions for liabilities
-
0
(4,755)
Net assets
215,588
258,821
Capital and reserves
Called up share capital
7
1
1
Capital redemption reserve
1
1
Profit and loss reserves
215,586
258,819
Total equity
215,588
258,821

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 30 November 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The member has 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.

Mareth Fabrications Limited
Balance Sheet (Continued)
As at 30 November 2022
Page 2
The financial statements were approved and signed by the director and authorised for issue on 17 November 2023
L.J. Maher
Director
Company Registration No. 02872764
Mareth Fabrications Limited
Notes to the Financial Statements
For the year ended 30 November 2022
Page 3
1
Accounting policies
Company information

Mareth Fabrications Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Shipping Building, The Old Vinyl Factory, Blyth Road, Hayes, London, UB3 1HA.

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 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 pound.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

The accompanying financial statements have been prepared under the assumption that the Company will continue as a going concern. The company made a pre-tax loss for the year of £40,988 and as at 30 November 2022 the company had net assets of £215,588. The ability of the Company to continue as a going concern is dependent upon its ability to successfully implement its business plan, generate profitable operations, and obtain the necessary finance to meet its obligations and repay its liabilities arising from normal business operations when they come due.

 

Management is actively pursuing strategies to address these matters, including but not limited to, cost reduction initiatives and exploring new business opportunities. The company is reliant on the support of its creditors, shareholders and bank. The director has reasonable grounds to believe that such ongoing financial support to the company will continue to be available for at least the next twelve months from the date of approval of these accounts. Failure to secure such support could adversely impact the Company’s ability to continue its operations and meet its obligations in the normal course of business.

 

At the time of approving the financial statements, the director having assessed the company’s current years profitability and order book, is of the opinion that the company is a going concern and therefore should continue to adopt the going concern basis of accounting in preparing these financial statements.

1.3
Turnover

Turnover represents the invoiced value of goods sold and services provided net of VAT. Turnover also includes projects at approved stages of completion not yet invoiced.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, 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 machinery
25% reducing balance
Fixtures, fittings & equipment
25% reducing balance
Motor vehicles
25% reducing balance
Mareth Fabrications Limited
Notes to the Financial Statements (Continued)
For the year ended 30 November 2022
1
Accounting policies
(Continued)
Page 4

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.

1.5
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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Stock

Stock are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stock to their present location and condition.

 

Stock held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stock over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Mareth Fabrications Limited
Notes to the Financial Statements (Continued)
For the year ended 30 November 2022
1
Accounting policies
(Continued)
Page 5
1.8
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 balance sheet 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 and cash and bank balances, 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.

1.9
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.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Mareth Fabrications Limited
Notes to the Financial Statements (Continued)
For the year ended 30 November 2022
1
Accounting policies
(Continued)
Page 6
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. 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.

1.11
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.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

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.

1.14
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.

Mareth Fabrications Limited
Notes to the Financial Statements (Continued)
For the year ended 30 November 2022
Page 7
2
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2022
2021
Number
Number
Total
3
12
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 December 2021
366,862
Additions
81,477
At 30 November 2022
448,339
Depreciation and impairment
At 1 December 2021
343,647
Depreciation charged in the year
21,079
At 30 November 2022
364,726
Carrying amount
At 30 November 2022
83,613
At 30 November 2021
23,215
4
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
225,336
355,442
Corporation tax recoverable
-
0
33,583
Other debtors
64,341
58,127
289,677
447,152

A provision for bad and doubtful debts of £50,830 (2021: £49,442) was made at the year end.

Mareth Fabrications Limited
Notes to the Financial Statements (Continued)
For the year ended 30 November 2022
Page 8
5
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans
10,000
6,667
Trade creditors
210,218
284,233
Corporation tax
-
0
2,420
Other taxation and social security
35,188
12,718
Other creditors
13,127
948
Accruals and deferred income
11,657
17,056
280,190
324,042
6
Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
33,332
43,333
7
Called up share capital
2022
2021
Ordinary share capital
£
£
Issued and fully paid
1 Ordinary shares of £1 each
1
1
8
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2022
2021
£
£
286,468
402,544
9
Directors' transactions

During the year dividends that amounted to £7,000 (2021: £Nil) was paid to the shareholder of the company.

Included within other creditors is an amount of £6,955 (2021: £930) due to L.J. Maher, a director of the company.

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