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Company Registration number: 04503393

M K Conversions Limited

Annual Report and Unaudited
Financial Statements


for the Year Ended 31 August 2023

 

M K Conversions Limited

Contents

Pages

Balance sheet

1 to 2

Notes to the financial statements

3 to 8

 

M K Conversions Limited

Balance Sheet as at 31 August 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

5

68,467

82,158

Current assets

 

Stocks

1,417,241

948,962

Debtors

6

179,372

169,106

Cash at bank and in hand

 

40,315

236,825

 

1,636,928

1,354,893

Creditors: Amounts falling due within one year

7

(342,089)

(200,981)

Net current assets

 

1,294,839

1,153,912

Total assets less current liabilities

 

1,363,306

1,236,070

Provisions for liabilities

(13,009)

(15,610)

Net assets

 

1,350,297

1,220,460

Capital and reserves

 

Called up share capital

11

11

Capital redemption reserve

2

2

Retained earnings

1,350,284

1,220,447

Shareholders' funds

 

1,350,297

1,220,460

 

M K Conversions Limited

Balance Sheet as at 31 August 2023 (continued)

For the financial year ending 31 August 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's 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 director acknowledges his 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 director has not delivered to the registrar a copy of the Profit and Loss Account.

Company registration number: 04503393

Approved and authorised by the director on 11 March 2024
 

.........................................
Mr S J Ball
Director

 

M K Conversions Limited

Notes to the financial statements for the Year Ended 31 August 2023

1

GENERAL INFORMATION

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

The address of its registered office is:
Four Lane Ends
Marthwaite
Sedbergh
LA10 5ES
 

These financial statements were authorised for issue by the director on 11 March 2024.

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.

The financial statements are prepared in sterling, which is the functional currency of the entity. Monetary amounts in these financial statements are rounded to the nearest £.

 

M K Conversions Limited

Notes to the financial statements for the Year Ended 31 August 2023 (continued)

2

ACCOUNTING POLICIES (continued)

Judgements and key sources of estimation uncertainty and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.

Revenue recognition

The turnover shown in the profit and loss account represents amounts invoiced during the year,
exclusive of Value Added Tax.

In respect of long term contracts and contracts for on-going services, turnover represents the
value of work done in the year including estimates of amounts not invoiced. Turnover in respect
of long-term contracts and contracts for on-going services is recognised by reference to the
stage of completion.

Interest received or receivable is recognised as it becomes due.

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 corporation 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.

 

M K Conversions Limited

Notes to the financial statements for the Year Ended 31 August 2023 (continued)

2

ACCOUNTING POLICIES (continued)

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

Plant and machinery

10% reducing balance

Motor vehicles

25% reducing balance

Leases

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.

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.

 

M K Conversions Limited

Notes to the financial statements for the Year Ended 31 August 2023 (continued)

2

ACCOUNTING POLICIES (continued)

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the
contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence
of impairment at the end of each reporting date. If there is objective evidence of impairment, an
impairment loss is recognised in profit or loss immediately.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the
reversal does not result in a carrying amount of the financial asset that exceeds what the
carrying amount would have been had the impairment not previously been recognised.

 Recognition and measurement
Basic financial instruments are initially recognised at the transaction price.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

 
 

3

STAFF NUMBERS

The average number of persons employed by the company (including the director) during the year, was 10 (2022 - 10).

 

M K Conversions Limited

Notes to the financial statements for the Year Ended 31 August 2023 (continued)

4

PROFIT BEFORE TAX

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

13,692

16,202

5

TANGIBLE ASSETS

Motor vehicles
 £

Plant and machinery
£

Total
£

Cost or valuation

At 1 September 2022

162,155

102,371

264,526

At 31 August 2023

162,155

102,371

264,526

Depreciation

At 1 September 2022

125,649

56,719

182,368

Charge for the year

9,126

4,565

13,691

At 31 August 2023

134,775

61,284

196,059

Carrying amount

At 31 August 2023

27,380

41,087

68,467

At 31 August 2022

36,506

45,652

82,158

 

M K Conversions Limited

Notes to the financial statements for the Year Ended 31 August 2023 (continued)

6

DEBTORS

2023
£

2022
£

Trade debtors

115,289

101,203

Prepayments

8,669

10,380

Other debtors

55,414

57,523

179,372

169,106

7

CREDITORS

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

384

4,822

Trade creditors

 

62,793

59,489

Taxation and social security

 

97,697

82,505

Accruals and deferred income

 

18,208

17,965

Other creditors

 

163,007

36,200

 

342,089

200,981

Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £384 (2022 £4,822)