Company registration number 11461543 (England and Wales)
MGD SPECIALIST INTERIOR FINISHES LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
PAGES FOR FILING WITH REGISTRAR
MGD SPECIALIST INTERIOR FINISHES LTD
CONTENTS
Page
Accountants' report
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 8
MGD SPECIALIST INTERIOR FINISHES LTD
ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF MGD SPECIALIST INTERIOR FINISHES LTD FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 1 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of MGD Specialist Interior Finishes Ltd for the year ended 30 September 2023 which comprise, the balance sheet and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation.
This report is made solely to the board of directors of MGD Specialist Interior Finishes Ltd, as a body, in accordance with the terms of our engagement letter dated 10 February 2022. Our work has been undertaken solely to prepare for your approval the financial statements of MGD Specialist Interior Finishes Ltd and state those matters that we have agreed to state to the board of directors of MGD Specialist Interior Finishes Ltd, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than MGD Specialist Interior Finishes Ltd and its board of directors as a body, for our work or for this report.
It is your duty to ensure that MGD Specialist Interior Finishes Ltd has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of MGD Specialist Interior Finishes Ltd. You consider that MGD Specialist Interior Finishes Ltd is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of MGD Specialist Interior Finishes Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Carpenter Box
16 February 2024
Chartered Accountants
5 Peveril Court
6-8 London Road
Crawley
West Sussex
RH10 8JE
MGD SPECIALIST INTERIOR FINISHES LTD
BALANCE SHEET
AS AT
30 SEPTEMBER 2023
30 September 2023
- 2 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
29,362
37,445
Current assets
Stocks
57,384
53,902
Debtors
4
598,293
600,201
Cash at bank and in hand
39,762
16,186
695,439
670,289
Creditors: amounts falling due within one year
5
(494,076)
(511,487)
Net current assets
201,363
158,802
Total assets less current liabilities
230,725
196,247
Creditors: amounts falling due after more than one year
6
(53,406)
(85,891)
Provisions for liabilities
(7,300)
(9,400)
Net assets
170,019
100,956
Capital and reserves
Called up share capital
7
4,266
4,266
Other reserves
20,000
20,000
Profit and loss reserves
145,753
76,690
Total equity
170,019
100,956
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 30 September 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.
MGD SPECIALIST INTERIOR FINISHES LTD
BALANCE SHEET (CONTINUED)
AS AT
30 SEPTEMBER 2023
30 September 2023
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 16 February 2024 and are signed on its behalf by:
Mr G A Seabrook
Director
Company Registration No. 11461543
MGD SPECIALIST INTERIOR FINISHES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 4 -
1
Accounting policies
Company information
MGD Specialist Interior Finishes Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 1 Timberlaine Estate, Gravel Lane, Quarry Lane, Chichester, West Sussex, PO19 8PP.
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
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have considered relevant information, including the company’s principal risks and uncertaintiestrue and the impact of subsequent events in making their assessment. Based on these assessments and having regard to the resources available to the entity, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements.
1.3
Turnover
Revenue is recognised at the fair value of the consideration received or receivable for sale of goods and services in the ordinary nature of the business. Revenue is shown net of Value Added Tax, of goods and services provided to customers.
Profit is recognised on long-term contracts, if the final outcome can be assessed with reasonable certainty, by including in the income statement revenue and related costs as contract activity progresses. Revenue is calculated as that proportion of total contract value which costs to date bear to total expected costs for that contract.
Contract retentions are recognised on the respective completed contracts when they fall due and it is reasonably certain they are recoverable.
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:
Fixtures and fittings
10% on a straight line basis
Computers
33% on a straight line basis
Motor vehicles
25% on a 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.
MGD SPECIALIST INTERIOR FINISHES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.5
Stocks
Stocks 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 stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks 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.
1.6
Construction contracts
Amounts recoverable on long term contracts, which are included in debtors, are stated at the net sales value of the work done after provision for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Excess progress payments are included in creditors as payments on account.
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 and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
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.
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.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, 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.
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.
Current tax
The tax currently payable is based on taxable profit for the year.
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.
MGD SPECIALIST INTERIOR FINISHES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 6 -
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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 balance sheet 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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 11 (2022 - 9).
3
Tangible fixed assets
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
Cost - as restated
At 1 October 2022
12,975
4,780
63,625
81,380
Additions
6,456
6,456
Disposals
(6,525)
(10,312)
(16,837)
At 30 September 2023
6,450
4,780
59,769
70,999
Depreciation and impairment - as restated
At 1 October 2022
4,908
3,567
35,460
43,935
Depreciation charged in the year
1,407
758
9,474
11,639
Eliminated in respect of disposals
(3,625)
(10,312)
(13,937)
At 30 September 2023
2,690
4,325
34,622
41,637
Carrying amount
At 30 September 2023
3,760
455
25,147
29,362
At 30 September 2022
8,067
1,213
28,165
37,445
A restatement has been made to the cost and depreciation of the motor vehicles at 30 September 2022. There has been no impact on the company's balance sheet.
MGD SPECIALIST INTERIOR FINISHES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 7 -
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
270,020
226,696
Amounts owed by group undertakings
4,266
4,266
Other debtors
324,007
369,239
598,293
600,201
5
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
23,636
23,636
Trade creditors
183,966
248,409
Taxation and social security
62,786
44,744
Other creditors
223,688
194,698
494,076
511,487
Bank loans and overdrafts are secured by a first legal charge over all assets of the company.
Amounts owed under invoice discounting totals £33,355 (2022 - £79,301) included within other payables are secured by way of a charge over all assets of the company.
Included within other payables are obligations under financial leases of £9,587 (2022 - £14,676) which are secured against the assets to which they relate.
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
39,394
63,030
Other creditors
14,012
22,861
53,406
85,891
Bank loans and overdrafts are secured by a first legal charge over all assets of the company.
Other payables are obligations under financial leases of £14,012 (2022 - £22,861) which are secured against the assets to which they relate.
MGD SPECIALIST INTERIOR FINISHES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 8 -
7
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid in the period
4,266 Ordinary shares of £1 each
4,266
4,266
8
Directors' transactions
Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Director loan account
-
2,973
(2,973)
-
2,973
(2,973)
-