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A & B Engineering (Southern) Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 January 2018

 

A & B Engineering (Southern) Limited

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Financial Statements

4 to 10

 

A & B Engineering (Southern) Limited

Company Information

Directors

Mr A Smallcorn

Mr SP Smallcorn

Company secretary

Mr A Smallcorn

Registered office

Unit 10 Wares Farm
Redwall Lane
Linton
Kent
ME17 4BB

 

A & B Engineering (Southern) Limited

(Registration number: 03144094)
Balance Sheet as at 31 January 2018

Note

2018
£

2017
£

Fixed assets

 

Tangible assets

4

364,901

249,990

Current assets

 

Stocks

5

39,190

21,843

Debtors

6

83,482

166,206

Cash at bank and in hand

 

117,966

49,486

 

240,638

237,535

Creditors: Amounts falling due within one year

7

(218,638)

(188,155)

Net current assets

 

22,000

49,380

Total assets less current liabilities

 

386,901

299,370

Creditors: Amounts falling due after more than one year

7

(233,351)

(134,466)

Provisions for liabilities

(56,343)

(46,837)

Net assets

 

97,207

118,067

Capital and reserves

 

Called up share capital

120

120

Share premium reserve

(118)

(118)

Profit and loss account

97,205

118,065

Total equity

 

97,207

118,067

For the financial year ending 31 January 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

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 and the option not to file the Profit and Loss Account has been taken.

 

A & B Engineering (Southern) Limited

(Registration number: 03144094)
Balance Sheet as at 31 January 2018

Approved and authorised by the Board on 30 October 2018 and signed on its behalf by:
 

.........................................

Mr A Smallcorn

Company secretary and director

.........................................

Mr SP Smallcorn

Director

 

A & B Engineering (Southern) Limited

Notes to the Financial Statements for the Year Ended 31 January 2018

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit 10 Wares Farm
Redwall Lane
Linton
Kent
ME17 4BB

These financial statements were authorised for issue by the Board on 30 October 2018.

2

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 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

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.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

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.

 

A & B Engineering (Southern) Limited

Notes to the Financial Statements for the Year Ended 31 January 2018

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 statement of financial position 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:

Asset class

Depreciation method and rate

Fixtures and fittings

25% on reducing balance

Motor vehicles

25% on reducing balance

Computer equipment

25% on reducing balance

Plant and machinery

25% on reducing balance

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

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:

Asset class

Amortisation method and rate

Goodwill

five years

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.

 

A & B Engineering (Southern) Limited

Notes to the Financial Statements for the Year Ended 31 January 2018

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. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

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.

 

A & B Engineering (Southern) Limited

Notes to the Financial Statements for the Year Ended 31 January 2018

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

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.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

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.

 

A & B Engineering (Southern) Limited

Notes to the Financial Statements for the Year Ended 31 January 2018

3

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 February 2017

40,000

40,000

At 31 January 2018

40,000

40,000

Amortisation

At 1 February 2017

40,000

40,000

At 31 January 2018

40,000

40,000

Carrying amount

At 31 January 2018

-

-

The aggregate amount of research and development expenditure recognised as an expense during the period is £Nil (2017 - £62,784).
 

 

A & B Engineering (Southern) Limited

Notes to the Financial Statements for the Year Ended 31 January 2018

4

Tangible assets

Furniture, fittings and equipment
 £

Motor vehicles
 £

Other tangible assets
£

Total
£

Cost or valuation

At 1 February 2017

28,091

52,455

1,050,768

1,131,314

Additions

255

-

245,700

245,955

At 31 January 2018

28,346

52,455

1,296,468

1,377,269

Depreciation

At 1 February 2017

26,322

45,705

809,297

881,324

Charge for the year

503

8,750

121,791

131,044

At 31 January 2018

26,825

54,455

931,088

1,012,368

Carrying amount

At 31 January 2018

1,521

(2,000)

365,380

364,901

At 31 January 2017

1,769

6,750

241,471

249,990

5

Stocks

2018
£

2017
£

Work in progress

25,996

8,775

Other inventories

13,194

13,068

39,190

21,843

6

Debtors

2018
£

2017
£

Trade debtors

77,320

152,000

Other debtors

6,162

14,206

83,482

166,206

7

Creditors

Creditors: amounts falling due within one year

 

A & B Engineering (Southern) Limited

Notes to the Financial Statements for the Year Ended 31 January 2018

Note

2018
£

2017
£

Due within one year

 

Bank loans and overdrafts

8

134,000

114,654

Trade creditors

 

41,174

43,406

Taxation and social security

 

41,289

27,862

Other creditors

 

2,175

2,233

 

218,638

188,155

Due after one year

 

Loans and borrowings

8

233,351

134,466

Creditors: amounts falling due after more than one year

Note

2018
£

2017
£

Due after one year

 

Loans and borrowings

8

233,351

134,466

8

Loans and borrowings

2018
£

2017
£

Non-current loans and borrowings

Finance lease liabilities

182,295

90,410

Other borrowings

51,056

44,056

233,351

134,466

2018
£

2017
£

Current loans and borrowings

Finance lease liabilities

125,150

102,813

Other borrowings

8,850

11,841

134,000

114,654