REGISTERED NUMBER: |
MIS CONVERSIONS LTD |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED |
30 APRIL 2024 |
REGISTERED NUMBER: |
MIS CONVERSIONS LTD |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED |
30 APRIL 2024 |
MIS CONVERSIONS LTD (REGISTERED NUMBER: 05665780) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 6 |
Income Statement | 10 |
Other Comprehensive Income | 11 |
Balance Sheet | 12 |
Statement of Changes in Equity | 13 |
Cash Flow Statement | 14 |
Notes to the Cash Flow Statement | 15 |
Notes to the Financial Statements | 17 |
MIS CONVERSIONS LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 APRIL 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Sidings House |
Sidings Court |
Lakeside |
Doncaster |
South Yorkshire |
DN4 5NU |
MIS CONVERSIONS LTD (REGISTERED NUMBER: 05665780) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 APRIL 2024 |
The directors present their strategic report for the year ended 30 April 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company is fleet conversion specialist. |
REVIEW OF BUSINESS |
The business has continued to grow during the financial year of 23-24 and it is reflected in the turnover increase . The business has taken on further sites in Doncaster, now running out of 3 main locations with a further 2 satellite buildings. We have increased our customer base, and the number of contracts has grown, providing job stability for all employees. We have implanted new processes and procedures to ensure costs monitored and to keep tighter controls throughout the business. New senior positions have been added to increase productivity and support departmental leads. Turnover for the 2023 year end was £14,106,789 with a gross profit margin of 13.67%. Turnover for the 2024 year end was £16,068,811 with gross profit margin of 20.17%. Turnover between the years shows an increase of 13.91%. |
MIS CONVERSIONS LTD (REGISTERED NUMBER: 05665780) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 APRIL 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Supply Chain Disruptions: Interruptions in the supply chain, such as delays in raw material deliveries or shortages of pre manufactured items , can halt production and lead to financial losses. In order to reduce these risks the business has identified all key products and materials and split them into dual supply thus reducing risk. |
Equipment Failure: Unexpected breakdowns of machinery and equipment can cause production delays and increase maintenance costs. The business has subscribed to repair and maintenance plans from the manufacturer with all large machinery to reduce downtime, in addition to this to reduce the risk in case of complete machine failure we have identified three sub-contractors that will be able to cope with the volume. Smaller non specialist equipment such as welders or saws are readily available to replace with short lead times. |
Technological Risks: The rapid pace of technological advancements can render existing equipment and processes obsolete, requiring significant investment in new technologies. All IT equipment is replaced on a annual cycle to ensure it complies with any security updates from the equipment and software providers. We have our own in house IT department that is backed up by a third party IT support company for out of hours cover. |
Workforce Shortage: A lack of skilled labour can affect production efficiency and quality, leading to delays and increased costs. The business has multiple recruitment agencies on board to give the business a full spectrum of employees for all specialist areas. The shopfloor labour force is on a continual program to deskill all tasks with plug and play equipment enabling the business to employee lesser skilled operatives and retain a small amount of skilled. |
Regulatory Compliance: Changes in regulations and standards can require costly adjustments to processes and equipment to remain compliant. Our in house Compliance Manager keeps costs to a minimum by identifying future compliance changes giving the business the opportunity to be proactive rather than reactive. |
Market Risks: Fluctuations in market demand and prices for materials can impact profitability and financial stability. The purchasing team highlights and increases in costs so this then gets automatically adjusted in our in house quotations system AMES which then automatically adjusts the sale price allowing profitability to remain stable. |
Safety Risks: Ensuring the safety of workers is paramount. Accidents and injuries can lead to legal liabilities, increased insurance costs, and loss of productivity. Our HR department constantly monitor any accidents in the work place and ensure all risk assessments and safety documentation and read, understood and acknowledged by every employee. |
Project Management Risks: Poor project management can result in cost overruns, missed deadlines, and subpar quality. Regular project meetings are held to ensure the business delivers on time without compromising on quality. |
Economic Conditions: Economic downturns can reduce demand for products, affecting revenue and profitability. This is unavoidable and cannot be foreseen but as we are an agile business with a multiskilled workforce we have proved in the past we can adapt and overcome quickly thus transferring skills into a different more in demand industry. (During the microchip shortage when we could not get vehicles delivered we manufactured "Welfare Trailers" keeping all the staff employed and continued the revenue stream) |
Environmental Risks: Environmental regulations and the need for sustainable practices can impose additional costs and operational changes. Our compliance Manager and HR Team work closely to identify any areas we are not compliant and ensures costs are passed on through the quotations system AMES. |
MIS CONVERSIONS LTD (REGISTERED NUMBER: 05665780) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 APRIL 2024 |
KPI’S AND GOING CONCERN |
Assessing the company's ability to continue its operations into the foreseeable future: |
Revenue Growth: Consistent revenue growth indicates a healthy demand for products and services, which is crucial for long-term sustainability. The business has continuously grown over the last 5 years which is reflected in the turnover increase of 14% over the last financial year. |
Profit Margins: Monitoring gross, operating, and net profit margins helps assess the company's profitability and efficiency in managing costs. The gross profit margin has increased from 14% to 20% over the last 12 months and is regularly monitored to ensure the company is profitable. |
Cash Flow: Positive cash flow from operations ensures the company can meet its short-term obligations and invest in future growth. Ash flow is monitored closely to ensure the business has positive cash levels to continue operations. |
Debt Levels: Keeping an eye on debt-to-equity ratio and interest coverage ratio helps evaluate the company's financial leverage and ability to service its debt. |
Inventory Turnover: High inventory turnover indicates efficient inventory management and strong sales performance. |
Customer Satisfaction and Retention: High levels of customer satisfaction and retention are indicators of a strong market position and future revenue stability. The company prides itself on customer retention and is actively seeking customer feedback to improve and develop. |
Market Share: Maintaining or growing market share indicates competitive strength and the ability to attract and retain customers. |
Risk Management: Identifying and mitigating risks related to supply chain, regulatory compliance, and technological changes is essential for long-term viability. The company has expanded supply chains to ensure there is various sources of necessary parts and has an in house compliance team to ensure regulations are adhered too. |
Sustainability Practices: Implementing sustainable practices can improve the company's reputation and ensure compliance with environmental regulations, which is increasingly important for long-term success. The company is ISO 14001 compliant to ensure environmental regulations and sustainable practise is upheld. |
FUTURE DEVELOPMENTS |
The Company has plans to expand further with a new production facility in early 2025 and increased workload to meet for our current and new customers' demands. There has also been investment in late 2024 into a new vehicle collection and delivery site to further meet our customer's needs. The staff headcount is expected to increase by around 25% including the adding of further engineers and support staff, to enable growth and development within the business. Current forecasts show the company to continually progress for the next 3-5 years. |
ON BEHALF OF THE BOARD: |
MIS CONVERSIONS LTD (REGISTERED NUMBER: 05665780) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 APRIL 2024 |
The directors present their report with the financial statements of the company for the year ended 30 April 2024. |
DIVIDENDS |
The total distribution of dividends for the year ended 30 April 2024 will be £262,000. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 May 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MIS CONVERSIONS LTD |
Qualified Opinion |
We have audited the financial statements of MIS Conversions Ltd (the 'Company') for the period ended 30 April 2024 which comprise the Profit and Loss Account, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion, except for the possible effects on the corresponding figures described in the basis for qualified opinion section of our report, the financial statements: |
- give a true and fair view of the state of the company's affairs as at 30 April 2024 and of the company's profit for the year then ended; |
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for qualified opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion. |
We were not appointed auditor of the company until after 30 April 2023 and thus did not observe the counting of physical stock at the end of that year. We were unable to satisfy ourselves by alternative means concerning the stock quantities of £1,942,178 held at 30 April 2023 by using other audit procedures. Consequently we were unable to determine whether any adjustments to this amount as at 30 April 2023 was necessary or whether there was any consequential effect on the cost of sales for the period ended 30 April 2024. Our audit opinion on the Financial Statements for the period ended 30 April 2024 was modified accordingly. Our opinion on the current period's financial statements is also modified because of the possible effect of this matter on the comparability of the current period's figures. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MIS CONVERSIONS LTD |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MIS CONVERSIONS LTD |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Based on our understanding of the Company, we identified that the principal risks of non-compliance with laws and regulations related to corporation tax legislation and we considered the extent to which non-compliance might have a material effect on the financial statements. |
As part of this assessment we considered both quantitative and qualitative factors. We also considered those laws and regulations that have a direct impact of the preparation of the financial statements, such as the Companies Act 2006 and FRS 102. |
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements which included the risk of management override of controls. We determined that the principal risks were related to posting inappropriate journal entries, omitting, advancing or delaying recognition of events and transactions that have occurred during or after the reporting period, and potential management bias in the determination of accounting estimates or judgements to manipulate results. |
Audit procedures performed by the engagement team include: |
- | Enquiring of and obtaining written representation from management in relation to known or suspected instances of non-compliance with laws and regulations and fraud; |
- | Enquiring of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations; |
- | Evaluation of management's controls designed to prevent and detect irregularities; |
- | Identifying and, where relevant, testing journal entries posted by senior management or with unusual combinations; |
- | Assessing and evaluating the business rationale of significant transactions outside the normal course of business; |
- | Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; |
- | Review of correspondence with regulators in so far as they are related to the financial statements; |
- | Incorporating elements of unpredictability into the nature, timing and/or extent of audit procedures performed. |
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MIS CONVERSIONS LTD |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Sidings House |
Sidings Court |
Lakeside |
Doncaster |
South Yorkshire |
DN4 5NU |
MIS CONVERSIONS LTD (REGISTERED NUMBER: 05665780) |
INCOME STATEMENT |
FOR THE YEAR ENDED 30 APRIL 2024 |
2024 | 2023 |
(Unaudited) |
Notes | £ | £ | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
2,291,222 | 1,692,781 |
949,719 | 519,873 |
Other operating income |
OPERATING PROFIT | 4 |
Interest receivable and similar income |
966,142 | 525,901 |
Interest payable and similar expenses | 5 |
PROFIT BEFORE TAXATION |
Tax on profit | 6 |
PROFIT FOR THE FINANCIAL YEAR |
MIS CONVERSIONS LTD (REGISTERED NUMBER: 05665780) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 APRIL 2024 |
2024 | 2023 |
(Unaudited) |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
MIS CONVERSIONS LTD (REGISTERED NUMBER: 05665780) |
BALANCE SHEET |
30 APRIL 2024 |
2024 | 2023 |
(Unaudited) |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors | 11 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
13 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
MIS CONVERSIONS LTD (REGISTERED NUMBER: 05665780) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 APRIL 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 May 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 April 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 April 2024 |
MIS CONVERSIONS LTD (REGISTERED NUMBER: 05665780) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 APRIL 2024 |
2024 | 2023 |
(Unaudited) |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
Tax paid | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Capital repayments in year |
Amount withdrawn by directors | (58,354 | ) | - |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
386,867 |
Cash and cash equivalents at end of year | 2 | 150,710 | 158,991 |
MIS CONVERSIONS LTD (REGISTERED NUMBER: 05665780) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 APRIL 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
(Unaudited) |
£ | £ |
Profit before taxation |
Depreciation charges |
Government grants | ( |
) | ( |
) |
Finance costs | 263,480 | 96,846 |
Finance income | - | (282 | ) |
1,057,842 | 612,774 |
Increase in stocks | ( |
) | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 April 2024 |
30.4.24 | 1.5.23 |
£ | £ |
Cash and cash equivalents | 150,710 | 158,991 |
Year ended 30 April 2023 |
30.4.23 | 1.5.22 |
(Unaudited) |
£ | £ |
Cash and cash equivalents | 158,991 | 386,867 |
MIS CONVERSIONS LTD (REGISTERED NUMBER: 05665780) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 APRIL 2024 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.5.23 | Cash flow | At 30.4.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 158,991 | (8,281 | ) | 150,710 |
158,991 | ( |
) | 150,710 |
Debt |
Finance leases | (103,477 | ) | (105,719 | ) | (209,196 | ) |
Debts falling due within 1 year | (150,945 | ) | (160,365 | ) | (311,310 | ) |
Debts falling due after 1 year | (357,002 | ) | 53,471 | (303,531 | ) |
(611,424 | ) | (212,613 | ) | (824,037 | ) |
Total | (452,433 | ) | (220,894 | ) | (673,327 | ) |
MIS CONVERSIONS LTD (REGISTERED NUMBER: 05665780) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
1. | STATUTORY INFORMATION |
MIS Conversions Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 isreduced for estimated customer returns, rebates and other similar allowances. |
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods. |
Goodwill |
Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the separable net assets. It is amortised to profit and loss account over its estimated economic life of 4 years. |
Tangible fixed assets |
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases: |
Leasehold | 10% straight line |
Plant & Machinery | 15% - 25% reducing balance |
Motor Vehicles | 25% reducing balance |
Fixtures & Fittings | 25% reducing balance |
Computer Equipment | 33% reducing balance |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
MIS CONVERSIONS LTD (REGISTERED NUMBER: 05665780) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
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. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
3. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
(Unaudited) |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
(Unaudited) |
Workshop | 136 | 110 |
Administration (including Directors) | 19 | 17 |
2024 | 2023 |
(Unaudited) |
£ | £ |
Directors' remuneration |
MIS CONVERSIONS LTD (REGISTERED NUMBER: 05665780) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
3. | EMPLOYEES AND DIRECTORS - continued |
Information regarding the highest paid director for the year ended 30 April 2024 is as follows: |
2024 |
£ |
Emoluments etc |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
2024 | 2023 |
(Unaudited) |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
(Unaudited) |
£ | £ |
Bank interest |
Bank loan interest |
HMRC Interest & Charges |
Factoring Interest |
Hire purchase |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
(Unaudited) |
£ | £ |
Current tax: |
UK corporation tax |
Underprovision in earlier year | (71,256 | ) | - |
Total current tax |
Deferred tax |
Tax on profit |
MIS CONVERSIONS LTD (REGISTERED NUMBER: 05665780) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
6. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
(Unaudited) |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Expenses not deductible for tax purposes | ( |
) | ( |
) |
Income not taxable for tax purposes | ( |
) |
Utilisation of tax losses | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) |
Total tax charge | 120,555 | 80,305 |
7. | DIVIDENDS |
2024 | 2023 |
(Unaudited) |
£ | £ |
Ordinary shares of £1 each |
Interim |
8. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 May 2023 |
and 30 April 2024 |
AMORTISATION |
At 1 May 2023 |
and 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
MIS CONVERSIONS LTD (REGISTERED NUMBER: 05665780) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
9. | TANGIBLE FIXED ASSETS |
Fixtures |
Short | Plant and | and |
leasehold | machinery | fittings |
£ | £ | £ |
COST |
At 1 May 2023 |
Additions |
At 30 April 2024 |
DEPRECIATION |
At 1 May 2023 |
Charge for year |
At 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 May 2023 |
Additions |
At 30 April 2024 |
DEPRECIATION |
At 1 May 2023 |
Charge for year |
At 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
MIS CONVERSIONS LTD (REGISTERED NUMBER: 05665780) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
9. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 May 2023 |
Reclassification/transfer |
At 30 April 2024 |
DEPRECIATION |
At 1 May 2023 |
Charge for year |
Reclassification/transfer |
At 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
10. | STOCKS |
2024 | 2023 |
(Unaudited) |
£ | £ |
Stocks |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
(Unaudited) |
£ | £ |
Trade debtors |
Directors' current accounts | 17,119 | - |
Prepayments |
MIS CONVERSIONS LTD (REGISTERED NUMBER: 05665780) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
(Unaudited) |
£ | £ |
Bank loans and overdrafts (see note 14) |
Hire purchase contracts (see note 15) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 301,567 | 198,673 |
Other creditors |
Factored Debt | 1,932,808 | 1,335,754 |
Directors' current accounts | - | 41,235 |
Accrued expenses | ( |
) |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
(Unaudited) |
£ | £ |
Bank loans (see note 14) |
Hire purchase contracts (see note 15) |
14. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
(Unaudited) |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
MIS CONVERSIONS LTD (REGISTERED NUMBER: 05665780) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
15. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2024 | 2023 |
(Unaudited |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable | operating leases |
2024 | 2023 |
(Unaudited) |
£ | £ |
Within one year |
Between one and five years |
The total of future minimum lease payments under non-cancellable operating leases at the balance sheet date was £289,167 (2023 - £137,458). |
16. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
(Unaudited) |
£ | £ |
Bank loans |
Hire purchase contracts | 209,196 | 103,477 |
The bank loan is secured by a legal debenture by fixed and floating charges over the assets of the Company. |
The invoice finance creditor is secured by way of fixed and floating charges over the assets of the Company. |
The amount of sales ledger debts subject to invoice discounting arrangements at 30 April 2024 was £2,427,149 (2023: £2,025,662). |
Within the bank loan includes a secure debt by the Company directors through personal guarantee to the sum of £40,000. |
MIS CONVERSIONS LTD (REGISTERED NUMBER: 05665780) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
17. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
(Unaudited) |
£ | £ |
Deferred tax | 93,534 | 79,976 |
Deferred |
tax |
£ |
Balance at 1 May 2023 |
Charge to Income Statement during year |
Balance at 30 April 2024 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 1,000 | 1,000 |
19. | RESERVES |
Retained |
earnings |
£ |
At 1 May 2023 |
Profit for the year |
Dividends | ( |
) |
At 30 April 2024 |