Company Registration No:
MMI-UK (Heat Exchanger Assembly Solutions) Ltd
for the Year Ended 30 November 2024
MMI-UK (Heat Exchanger Assembly Solutions) Ltd
Contents
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Balance Sheet |
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Notes to the Unaudited Financial Statements |
MMI-UK (Heat Exchanger Assembly Solutions) Ltd
(Registration number: 09029232)
Balance Sheet as at 30 November 2024
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Note |
2024 |
2023 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
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Net liabilities |
( |
( |
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Capital and reserves |
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Called up share capital |
249,000 |
249,000 |
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Retained earnings |
(1,005,974) |
(787,723) |
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Shareholders' deficit |
(756,974) |
(538,723) |
MMI-UK (Heat Exchanger Assembly Solutions) Ltd
(Registration number: 09029232)
Balance Sheet as at 30 November 2024
For the financial year ending 30 November 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.
Approved and authorised by the
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MMI-UK (Heat Exchanger Assembly Solutions) Ltd
Notes to the Unaudited Financial Statements for the Year Ended 30 November 2024
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
England
These financial statements were authorised for issue by the
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.
MMI-UK (Heat Exchanger Assembly Solutions) Ltd
Notes to the Unaudited Financial Statements for the Year Ended 30 November 2024
Going concern
On 30 November 2023, the company entered into a Company Voluntary Arrangement (CVA) with the intention of trading out of its current conditions.
The directors, in consultation with the appropriate professionals, have determined that there is material uncertainty with regard to the going concern of the business, due to the downturn in the automotive sector which has resulted in insufficient working capital.
The directors do, however, deem it appropriate to prepare accounts on a going concern basis for the year ended 30 November 2024 as it reflects the financial position of the company at that time.
Judgements
In the application of the company's accounting policies, which are described above, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
Key sources of estimation uncertainty
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Revenue recognition
Revenue is measured at the fair value of consideration received or receivable for goods and services provided in the normal course of business, net of discounts and VAT.
Revenue on longer term projects is recognised as the project progresses. Attributable profit is recognised once the outcome of a longer term project can be assessed with reasonable certainty. Attributable profit is recognised on the cost percentage completion method. Immediate provision is made for all foreseeable losses if a contract is assessed as unprofitable.
Billings in excess of costs and costs in excess of billings are shown in the balance sheet under Other debtors and Other creditors.
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is a reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
MMI-UK (Heat Exchanger Assembly Solutions) Ltd
Notes to the Unaudited Financial Statements for the Year Ended 30 November 2024
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when 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.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
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Asset class |
Depreciation method and rate |
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Plant and machinery |
15% reducing balance |
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Computer equipment |
25% reducing balance |
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Motor vehicles |
25% reducing balance |
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Leasehold improvements |
Straight line over the life of the lease |
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Fixtures, fittings and equipment |
15% reducing balance |
Intangible assets
Intangible assets are stated in the balance sheet at cost, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
MMI-UK (Heat Exchanger Assembly Solutions) Ltd
Notes to the Unaudited Financial Statements for the Year Ended 30 November 2024
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Asset class |
Amortisation method and rate |
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Computer software |
15% reducing balance |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Costs includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Provisions
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
MMI-UK (Heat Exchanger Assembly Solutions) Ltd
Notes to the Unaudited Financial Statements for the Year Ended 30 November 2024
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
MMI-UK (Heat Exchanger Assembly Solutions) Ltd
Notes to the Unaudited Financial Statements for the Year Ended 30 November 2024
Financial instruments
Classification
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.
Recognition and measurement
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.
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 receipts 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.
MMI-UK (Heat Exchanger Assembly Solutions) Ltd
Notes to the Unaudited Financial Statements for the Year Ended 30 November 2024
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Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
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Intangible assets |
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Other intangible assets |
Total |
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Cost or valuation |
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At 1 December 2023 |
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At 30 November 2024 |
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Amortisation |
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At 1 December 2023 |
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Amortisation charge |
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At 30 November 2024 |
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Carrying amount |
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At 30 November 2024 |
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At 30 November 2023 |
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MMI-UK (Heat Exchanger Assembly Solutions) Ltd
Notes to the Unaudited Financial Statements for the Year Ended 30 November 2024
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Tangible assets |
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Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Assets under construction |
Other tangible assets |
Total |
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Cost or valuation |
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At 1 December 2023 |
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Disposals |
- |
( |
- |
- |
- |
( |
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At 30 November 2024 |
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Depreciation |
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At 1 December 2023 |
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- |
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Charge for the year |
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- |
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Eliminated on disposal |
- |
( |
- |
- |
- |
( |
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At 30 November 2024 |
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- |
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Carrying amount |
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At 30 November 2024 |
- |
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At 30 November 2023 |
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Included within the net book value of land and buildings above is £Nil (2023 - £772) in respect of short leasehold land and buildings.
MMI-UK (Heat Exchanger Assembly Solutions) Ltd
Notes to the Unaudited Financial Statements for the Year Ended 30 November 2024
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Stocks |
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2024 |
2023 |
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Raw materials and consumables |
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Debtors |
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Current |
2024 |
2023 |
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Trade debtors |
383,151 |
598,736 |
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Provision for impairment of debtors |
(138,283) |
(56,648) |
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Prepayments |
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Other debtors |
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Cost in excess of billings |
94,385 |
659,297 |
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MMI-UK (Heat Exchanger Assembly Solutions) Ltd
Notes to the Unaudited Financial Statements for the Year Ended 30 November 2024
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Creditors |
Creditors: amounts falling due within one year
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Note |
2024 |
2023 |
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Due within one year |
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Loans and borrowings |
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Trade creditors |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
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Taxation and social security |
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Accruals and deferred income |
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Other creditors |
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Billings in excess of costs |
91,343 |
38,164 |
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Creditors: amounts falling due after more than one year
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Note |
2024 |
2023 |
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Due after one year |
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Loans and borrowings |
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Other non-current financial liabilities |
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Other non-current financial liabilities relates to trade creditors included within a Company Voluntary Arrangement (CVA) entered into on 30 November 2023. The total amount owed by the company under the CVA was £436,962, payable in monthly installments from January 2024 for 57 months. In addition to these minimum contributions, the company shall pay 50% of profits (after provision for tax) as an additional contribution into the Arrangement. Should the comapny receive a tax refund during the course of the Arrangement, 50% of the refund received will be paid into the Arrangement. In the case of a breach of the Arrangement, £1,068,279 to unsecured creditors would become repayable upon demand and the supervisors may also petition for the winding up of the company.
MMI-UK (Heat Exchanger Assembly Solutions) Ltd
Notes to the Unaudited Financial Statements for the Year Ended 30 November 2024
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Share capital |
Allotted, called up and fully paid shares
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2024 |
2023 |
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No. |
£ |
No. |
£ |
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249,000 |
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249,000 |
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Loans and borrowings |
Non-current loans and borrowings
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2024 |
2023 |
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Bank borrowings |
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Hire purchase contracts |
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Current loans and borrowings
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2024 |
2023 |
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Bank borrowings |
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Bank overdrafts |
- |
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Hire purchase contracts |
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Other borrowings |
- |
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Bank borrowings
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Security for the loan is a debenture held by National Westminster Bank PLC. |
Other borrowings
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Funding Circle loan is denominated in £ with a nominal interest rate of 18.4%, and the final instalment was due on 5 March 2024. The carrying amount at year end is £Nil (2023 - £34,633). |
MMI-UK (Heat Exchanger Assembly Solutions) Ltd
Notes to the Unaudited Financial Statements for the Year Ended 30 November 2024
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Financial commitments, guarantees and contingencies |
Amounts not provided for in the balance sheet
The total amount of financial commitments not included in the balance sheet is £
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Related party transactions |
Summary of transactions with parent
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Parent and ultimate parent undertaking |
The company's immediate parent is