Registered number
04357180
Mechplant (North East) Limited
Filleted Accounts
31 December 2023
Mechplant (North East) Limited
Registered number: 04357180
Balance Sheet
as at 31 December 2023
Notes 2023 2022
£ £
Fixed assets
Tangible assets 3 622,994 781,672
Current assets
Debtors 4 1,014,787 835,235
Cash at bank and in hand 53,985 43,583
1,068,772 878,818
Creditors: amounts falling due within one year 5 (737,232) (481,066)
Net current assets 331,540 397,752
Total assets less current liabilities 954,534 1,179,424
Creditors: amounts falling due after more than one year 6 (310,460) (543,422)
Provisions for liabilities (117,415) (147,503)
Net assets 526,659 488,499
Capital and reserves
Called up share capital 200 200
Profit and loss account 526,459 488,299
Shareholders' funds 526,659 488,499
The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
S R G Makinson
Director
Approved by the board on 3 June 2024
Mechplant (North East) Limited
Notes to the Accounts
for the year ended 31 December 2023
1 Accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Workshop equipment 20% reducing balance
Hire plant 3 - 7 years straight-line
Office equipment 33% straight line
Stocks
Stocks are measured at the lower of cost and estimated realisable value. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that 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, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
Leased assets
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
Pensions
Contributions to defined contribution plans are expensed in the period to which they relate.
2 Employees 2023 2022
Number Number
Average number of persons employed by the company 12 11
3 Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2023 1,304,682
At 31 December 2023 1,304,682
Depreciation
At 1 January 2023 523,010
Charge for the year 158,678
At 31 December 2023 681,688
Net book value
At 31 December 2023 622,994
At 31 December 2022 781,672
4 Debtors 2023 2022
£ £
Trade debtors 464,528 411,286
Amounts owed by group undertakings and undertakings in which the company has a participating interest 538,025 413,025
Other debtors 12,234 10,924
1,014,787 835,235
5 Creditors: amounts falling due within one year 2023 2022
£ £
Bank loans and overdrafts 179,871 69,847
Obligations under finance lease and hire purchase contracts 217,814 212,574
Trade creditors 188,407 92,846
Taxation and social security costs 76,324 82,446
Other creditors 74,816 23,353
737,232 481,066
6 Creditors: amounts falling due after one year 2023 2022
£ £
Bank loans 76,356 153,042
Obligations under finance lease and hire purchase contracts 234,104 390,380
310,460 543,422
7 Pension commitments
The company operates a defined contribution pension scheme. The pension cost for the year represents contributions payable by the company to the scheme and amounted to £16,119 (2022: £13,844).
8 Other financial commitments 2023 2022
£ £
Total future minimum payments under non-cancellable operating leases 14,444 27,778
9 Related party transactions
At the balance sheet date the company was owed the following from companies under common control.
2023 2022
£ £
D & K Plant Hire (North East) Limited 425,025 300,025
Webster Plant Haulage (North East) Limited 113,000 113,000
538,025 413,025
10 Other information
Mechplant (North East) Limited is a private company limited by shares and incorporated in England. Its registered office is:
Unit 19 Tyne Dock
Port of Tyne
South Shields
Tyne & Wear
NE34 5SP
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