Company Registration No. 14917059 (England and Wales)
MEKINA INDUSTRIES LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
PAGES FOR FILING WITH REGISTRAR
MEKINA INDUSTRIES LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
MEKINA INDUSTRIES LTD
BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 1 -
2024
Notes
£
£
Fixed assets
Tangible assets
3
4,518
Current assets
Debtors
4
138,023
Cash at bank and in hand
114,081
252,104
Creditors: amounts falling due within one year
5
(388,519)
Net current liabilities
(136,415)
Net liabilities
(131,897)
Capital and reserves
Called up share capital
6
100
Profit and loss reserves
(131,997)
Total equity
(131,897)

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

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

The financial statements were approved by the board of directors and authorised for issue on 15 November 2024 and are signed on its behalf by:
SC Burns
I Baggaley
Director
Director
Company registration number 14917059 (England and Wales)
MEKINA INDUSTRIES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
1
Accounting policies
Company information

Mekina Industries Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Dura House, Telford Road, Gorse Lane Industrial Estate, Clacton-On-Sea, Essex, CO15 4LP.

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 £.

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 are agreed that the company is on course to develop significant net profit streams in the next financial year and beyond. true

 

Whilst the company has reported losses in its first period since incorporation this was fully anticipated due mainly to the long lead-times required to win the larger infrastructure bridge projects, and the amount of energy and money that goes into setting up a business to commence trading. The company does have an excess of liabilities over assets at the balance sheet date as a result.

 

The directors are therefore confident in the ability of the company to trade profitably now that it is fully established and has a very significant order book and is building a blue chip client list. The budget for 2024-2025 shows huge growth producing significant profits. In addition the company has the continued support of its investor shareholder, who are investing in the business as part of a long term growth strategy within civil infrastructure markets and does not require the intercompany debt repaid at this time.

 

Based upon the factors noted above the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

MEKINA INDUSTRIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 3 -

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

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
20% straight line
Computer equipment
25% straight line

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.

1.6
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.

1.7
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.

MEKINA INDUSTRIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 4 -
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.

1.8
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.

1.9
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.

1.10
Retirement benefits

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

1.11
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.

MEKINA INDUSTRIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -
2
Employees

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

2024
Number
Total
3
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 6 June 2023
-
0
Additions
5,849
At 30 June 2024
5,849
Depreciation and impairment
At 6 June 2023
-
0
Depreciation charged in the year
1,331
At 30 June 2024
1,331
Carrying amount
At 30 June 2024
4,518
4
Debtors
2024
Amounts falling due within one year:
£
Trade debtors
123,415
Other debtors
14,608
138,023
5
Creditors: amounts falling due within one year
2024
£
Trade creditors
28,344
Taxation and social security
33,734
Other creditors
326,441
388,519
MEKINA INDUSTRIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
5
Creditors: amounts falling due within one year
(Continued)
- 6 -

Included in other creditors is £75,991 owed under an invoice discounting facility. This balance is secured by a fixed and floating charge over the company's assets and by a cross guarantee provided by a shareholding entity and its subsidiaries.

6
Called up share capital
2024
2024
Ordinary share capital
Number
£
Issued and not fully paid
Founder shares of £1 each
50
50
Investor shares of £1 each
50
50
100
100

On incorporation, 50 founder shares and 50 investor shares were issued at £1 each. At the balance sheet date, these remain unpaid and are included within other debtors.

 

Each share class ranks pari passu in relation to voting rights and dividend payments or any other distribution declared on that class of share.

 

Each investor share is preferentially entitled to participate first in the order of priority in a distribution arising from a winding up of the company.

7
Financial commitments, guarantees and contingent liabilities

The company has entered into a cross guarantee arrangement as disclosed within note 5 of the financial statements. The total amount outstanding at the balance sheet date in respect of these facilities was £2,238,943.

8
Operating lease commitments

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

2024
£
Within one year
29,750
Between two and five years
54,528
84,278
9
Related party transactions

Within other creditors is a balance of £237,655 which is owed to a subsidiary of the investor shareholder.

MEKINA INDUSTRIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
10
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Michael Breame
Statutory Auditor:
Rickard Luckin Limited
Date of audit report:
20 November 2024
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