Contents of the Financial Statements
for the Period Ended 30 June 2024
Balance sheet
As at
30 June 2024
|
Notes
|
2024
|
2023
|
|
|
£
|
£
|
Fixed assets |
Intangible assets: |
3 |
1,610
|
8,050
|
Tangible assets: |
4 |
630,722
|
542,488
|
Total fixed assets: |
|
632,332
|
550,538
|
Current assets |
Stocks: |
|
76,820
|
84,668
|
Debtors: |
|
1,760,103
|
1,470,890
|
Cash at bank and in hand: |
|
3,447
|
5,509
|
Total current assets: |
|
1,840,370
|
1,561,067
|
Creditors: amounts falling due within one year: |
|
(785,707)
|
(642,326)
|
Net current assets (liabilities): |
|
1,054,663
|
918,741
|
Total assets less current liabilities: |
|
1,686,995
|
1,469,279
|
Creditors: amounts falling due after more than one year: |
5 |
(545,485)
|
(485,872)
|
Provision for liabilities: |
|
(44,931)
|
(26,606)
|
Total net assets (liabilities): |
|
1,096,579
|
956,801
|
Capital and reserves |
Called up share capital: |
|
1,334
|
1,334
|
Profit and loss account: |
|
1,095,245
|
955,467
|
Shareholders funds: |
|
1,096,579
|
956,801
|
The notes form part of these financial statements
Balance sheet statements
For the year ending 30 June 2024 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
The members have agreed to the preparation of abridged accounts for this accounting period in accordance with Section 444(2A).
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The directors have chosen to not file a copy of the company’s profit & loss account.
This report was approved by the board of directors on
23 October 2024
and signed on behalf of the board by:
Name:
Malcolm Thornton
Status: Director
The notes form part of these financial statements
Notes to the Financial Statements
for the Period Ended 30 June 2024
1. Accounting policies
These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102Turnover policy
Turnover is measured at the fair value of the consideration received or receivable for goods or services supplied, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer, usually on despatch of the goods; the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.Tangible fixed assets and depreciation policy
Tangible assets are initially measured at cost and are subsequently measured at cost less any accumulated depreciation and accumulated impairment losses or at a revalued amount.
Any tangible assets carried at a revalued amount are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
An increase in the carrying amount of an asset as a result of a revaluation is recognised in other comprehensive income and accumulated in capital and reserves. However, the increase is recognised in profit or loss to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves. If a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess is recognised in profit or loss.
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:
Land and buildings - 2% straight line
Plant and machinery - 15% and 33.3% straight line
Motor vehicles - 25% reducing balanceIntangible fixed assets and amortisation policy
Intangible assets are initially measured at cost and are subsequently measured at cost less any accumulated amortisation and accumulated impairment losses or at a revalued amount. However, intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable, and the cost or value can be measured reliably.Any intangible assets carried at a revalued amount are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.
An increase in the carrying amount of an asset as a result of a revaluation is recognised in other comprehensive income and accumulated in capital and reserves. However, the increase is recognised in profit or loss to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves. If a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess is recognised in profit or loss.
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:
Goodwill - 33.3% straight lineOther accounting policies
BASIS OF PREPARATION
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain assets.
The financial statements are prepared in sterling, which is the functional currency of the company.
CURRENT TAX
Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
GOODWILL
Purchased goodwill arises on business acquisitions and represents the difference between the cost of acquisition and the fair values of the identifiable assets and liabilities acquired.
Goodwill is initially recorded at cost and is subsequently stated at cost less any accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over the useful economic life of the asset. Where a reliable estimate of the useful life of goodwill cannot be made, the life is presumed not to exceed five years.
IMPAIRMENT
A review for indicators or impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
STOCKS
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.
FINANCE LEASES AND HIRE PURCHASE CONTRACTS
Assets held under finance leases are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.
Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
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 and are subsequently measured as follows: Debt instruments are subsequently measured at amortised cost and commitments to receive a loan and to make a loan to another entity are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment.
All other financial instruments, including derivatives, are initially recognised at fair value, which is normally the transaction price and are subsequently measured at fair value, with any changes recognised in profit or loss.
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.
All equity instruments regardless of significance, and other financial assets that are individually significant, are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics.
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.
DEFERRED TAX
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is more likely than not that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured on an undiscounted basis at the tax rates that would apply in the periods in which timing differences are expected to reverse, based on tax rates and laws enacted at the statement of financial position date.
PROVISION FOR LIABILITIES
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.
Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.
PENSION COSTS
The company operates a defined contribution pension scheme. Contributions payable to the company’s pension scheme are charged to the income statement in the period to which they relate.
Notes to the Financial Statements
for the Period Ended 30 June 2024
2. Employees
|
2024 |
2023 |
Average number of employees during the period |
45
|
45
|
Notes to the Financial Statements
for the Period Ended 30 June 2024
3. Intangible Assets
|
Total |
Cost |
£ |
At 01 July 2023 |
29,077
|
Disposals |
(9,777)
|
At 30 June 2024 |
19,300
|
Amortisation |
|
At 01 July 2023 |
21,027
|
Charge for year |
6,440
|
On disposals |
(9,777)
|
At 30 June 2024 |
17,690
|
Net book value |
|
At 30 June 2024 |
1,610
|
At 30 June 2023 |
8,050
|
Notes to the Financial Statements
for the Period Ended 30 June 2024
4. Tangible Assets
|
Total |
Cost |
£ |
At 01 July 2023 |
634,847
|
Additions |
171,032
|
Disposals |
(34,489)
|
At 30 June 2024 |
771,390
|
Depreciation |
|
At 01 July 2023 |
92,359
|
Charge for year |
80,010
|
On disposals |
(31,701)
|
At 30 June 2024 |
140,668
|
Net book value |
|
At 30 June 2024 |
630,722
|
At 30 June 2023 |
542,488
|
The carrying amount of fixed assets, included in the above, which are held under hire purchase contracts included within other creditors are £206,856 (2023: £90,473).
Notes to the Financial Statements
for the Period Ended 30 June 2024
5. Creditors: amounts falling due after more than one year note
The bank loans are secured by both fixed and floating charges over the company’s assets. The finance leases included in other creditors are secured on the assets concerned. Bank loans outstanding at the year-end include instalments due after more than five years of £235,000 (2023 - £244,000).
Notes to the Financial Statements
for the Period Ended 30 June 2024
6. Financial commitments
At 30 June 2024, the company had total commitments under non-cancellable operating leases over the remaining life of those leases of £70,525 (2023: £nil).
Notes to the Financial Statements
for the Period Ended 30 June 2024
7. Loans to directors
Name of director receiving advance or credit: |
M Thornton
|
Description of the loan: |
The loan is unsecured, interest free and repayable on demand.
|
£ |
Balance at 01 July 2023 |
|
2,960
|
Advances or credits repaid: |
|
1,400 |
Balance at 30 June 2024 |
|
1,560
|
Notes to the Financial Statements
for the Period Ended 30 June 2024
8. Related party transactions
Name of the related party: |
MHT Investments Limited
|
Relationship: |
Under common control
|
Description of the Transaction: |
The loan is unsecured, interest is charged at 6% and it’s repayable on demand.
|
£ |
Balance at 01 July 2023 |
|
100,000
|
Balance at 30 June 2024 |
|
155,000
|