Company registration number SC447111 (Scotland)
MASTARCH LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
MASTARCH LIMITED
CONTENTS
Page
Company information
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 9
MASTARCH LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr M Jarvis
Mr D Denholm
Mr M Johnstone
Company number
SC447111
Registered office
51 St Vincent Crescent
Glasgow
Scotland
G3 8NQ
Accountants
Consilium Chartered Accountants
169 West George Street
Glasgow
Scotland
G2 2LB
MASTARCH LIMITED
BALANCE SHEET
AS AT 31 MAY 2024
31 May 2024
- 2 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
277,050
215,183
Current assets
Stocks
702,538
996,398
Debtors
5
577,810
691,794
Cash at bank and in hand
374,509
532,550
1,654,857
2,220,742
Creditors: amounts falling due within one year
6
(419,369)
(498,066)
Net current assets
1,235,488
1,722,676
Total assets less current liabilities
1,512,538
1,937,859
Creditors: amounts falling due after more than one year
7
(95,094)
(62,246)
Provisions for liabilities
8
(69,263)
(36,534)
Net assets
1,348,181
1,839,079
Capital and reserves
Called up share capital
10
330
330
Share premium account
1,770
1,770
Profit and loss reserves
1,346,081
1,836,979
Total equity
1,348,181
1,839,079

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

For the financial year ended 31 May 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

MASTARCH LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 MAY 2024
31 May 2024
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 10 December 2024 and are signed on its behalf by:
Mr D Denholm
Director
Company Registration No. SC447111
MASTARCH LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 4 -
1
Accounting policies
Company information

MASTARCH Limited is a private company limited by shares incorporated in Scotland. The registered office is 51 St Vincent Crescent, Glasgow, Scotland, G3 8NQ. The company's registration number is SC447111.

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
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of discounts and VAT.

1.3
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

 

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:

Plant and equipment
33.33% straight line
Fixtures and fittings
33.33% straight line
Motor vehicles
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 the profit and loss account.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

1.6
Stocks

Work in progress is valued at sales value.

MASTARCH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 5 -
1.7
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.

1.8
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.

1.9
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.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

MASTARCH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 6 -
1.11
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.

1.12
Retirement benefits

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

1.13
Leases

Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at their fair value, and are depreciated in accordance with the above depreciation policies.

 

Future instalments payable under such agreements, net of finance charges, are included within creditors. Rentals payable are apportioned between the capital element, which reduces the outstanding obligation included within creditors, and the finance element, which is charged to the profit and loss account on a straight line basis.

2
Employees

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

2024
2023
Total
45
43
3
Intangible fixed assets
Goodwill
£
Cost
At 1 June 2023 and 31 May 2024
1,184,025
Amortisation and impairment
At 1 June 2023 and 31 May 2024
1,184,025
Carrying amount
At 31 May 2024
-
0
At 31 May 2023
-
0
MASTARCH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 7 -
4
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 June 2023
194,942
56,135
215,306
466,383
Additions
6,415
209
225,276
231,900
Disposals
-
0
-
0
(100,147)
(100,147)
At 31 May 2024
201,357
56,344
340,435
598,136
Depreciation and impairment
At 1 June 2023
160,914
44,496
45,790
251,200
Depreciation charged in the year
19,275
4,579
89,846
113,700
Eliminated in respect of disposals
-
0
-
0
(43,814)
(43,814)
At 31 May 2024
180,189
49,075
91,822
321,086
Carrying amount
At 31 May 2024
21,168
7,269
248,613
277,050
At 31 May 2023
34,028
11,639
169,516
215,183
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
399,133
420,157
Other debtors
178,677
271,637
577,810
691,794
6
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
81,037
88,552
Taxation and social security
196,929
291,894
Other creditors
141,403
117,620
419,369
498,066

Included within other creditors are amounts totalling £31,262 (2023 - £15,561) relating to hire purchase contracts which are secured over the assets to which they relate.

MASTARCH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 8 -
7
Creditors: amounts falling due after more than one year
2024
2023
£
£
Other creditors
95,094
62,246

Included within other creditors are amounts totalling £95,094 (2023 - £62,246) relating to hire purchase contracts which are secured over the assets to which they relate.

8
Provisions for liabilities
2024
2023
£
£
Deferred tax liabilities
9
69,263
36,534
9
Deferred taxation

The following are the major deferred tax liabilities recognised by the company and movements thereon:

2024
2023
Balances:
£
£
Accelerated capital allowances
69,263
36,534
2024
Movements in the year:
£
Liability at 1 June 2023
36,534
Charge to profit or loss
13,335
Effect of change in tax rate - profit or loss
19,394
Liability at 31 May 2024
69,263
10
Called up share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
100 A Ordinary of £1
100
100
100 B Ordinary of £1
100
100
100 C Ordinary of £1
100
100
10 AZ Ordinary of £1
10
10
10 BZ Ordinary of £1
10
10
10 CZ Ordinary of £1
10
10
330
330
MASTARCH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 9 -
11
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
2023
£
£
50,746
87,755
12
Related party transactions
Balances with related parties
Amounts owed by
Amounts owed to
related parties
related parties
2024
2023
2024
2023
£
£
£
£
Other related parties
139,167
210,571
70,360
51,134
Other information

No other transactions with related parties were undertaken such as are required to be disclosed under Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

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