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Agricultural & Mechanical Services Ltd

Annual Report and Unaudited Financial Statements

for the Year Ended 31 August 2016

H.B. Associates
As part of Candour Accounts Limited
Spalding Business Centre
Church Street
Spalding
Lincolnshire
PE11 2PB

Agricultural & Mechanical Services Ltd

Contents

Company Information	1
Directors' Report	2
Accountants' Report	3
Profit and Loss Account	4
Statement of Comprehensive Income	5
Balance Sheet	6 to 7
Statement of Changes in Equity	8
Notes to the Financial Statements	9 to 13

Agricultural & Mechanical Services Ltd

Company Information

Directors

Mr D J Smith Mrs B J Smith

Registered office

18 Main Road Threeholes Wisbech Cambs PE14 9JS

Accountants

H.B. Associates As part of Candour Accounts Limited Spalding Business Centre Church Street Spalding Lincolnshire PE11 2PB

Page 1

Agricultural & Mechanical Services Ltd

Directors' Report for the Year Ended 31 August 2016

The Directors present their report and the financial statements for the year ended 31 August 2016.

Directors of the Company

The directors who held office during the year were as follows:

Mr D J Smith

Mrs B J Smith

Principal activity

The principal activity of the company is that of agricultural and mechanical services

Small companies provision statement

This report has 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.

Approved by the Board on 24 November 2016 and signed on its behalf by:

.........................................
Mr D J Smith
Director

.........................................
Mrs B J Smith
Director

Page 2

Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Agricultural & Mechanical Services Ltd
for the Year Ended 31 August 2016

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Agricultural & Mechanical Services Ltd for the year ended 31 August 2016 as set out on pages 4 to 13 from the company's accounting records and from information and explanations you have given us.

This report is made solely to the Board of Directors of Agricultural & Mechanical Services Ltd, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of Agricultural & Mechanical Services Ltd and state those matters that we have agreed to state to the Board of Directors of Agricultural & Mechanical Services Ltd, as a body. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Agricultural & Mechanical Services Ltd and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Agricultural & Mechanical Services Ltd has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Agricultural & Mechanical Services Ltd. You consider that Agricultural & Mechanical Services Ltd is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Agricultural & Mechanical Services Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

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

H.B. Associates
As part of Candour Accounts LimitedSpalding Business CentreChurch StreetSpaldingLincolnshirePE11 2PB

24 November 2016

Page 3

Agricultural & Mechanical Services Ltd

Profit and Loss Account for the Year Ended 31 August 2016

	Note	2016  £	2015  £
Turnover		1,115,121	1,115,867
Cost of sales		(900,658)	(878,729)
Gross profit		214,463	237,138
Administrative expenses		(203,194)	(190,293)
Operating profit		11,269	46,845
Other interest receivable and similar income		10	20
Interest payable and similar charges		(2,770)	(2,366)
		(2,760)	(2,346)
Profit before tax	4	8,509	44,499
Taxation		(1,015)	(8,488)
Profit for the financial year		7,494	36,011

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

The notes on pages 9 to 13 form an integral part of these financial statements.
Page 4

Agricultural & Mechanical Services Ltd

Statement of Comprehensive Income for the Year Ended 31 August 2016

	Note	2016  £	2015  £
Profit for the year		7,494	36,011
Total comprehensive income for the year		7,494	36,011

The notes on pages 9 to 13 form an integral part of these financial statements.
Page 5

Agricultural & Mechanical Services Ltd

(Registration number: 06995579)
Balance Sheet as at 31 August 2016

	Note	2016  £	2015  £
Fixed assets
Intangible assets	5	5,924	5,924
Tangible assets	6	112,267	107,947
		118,191	113,871
Current assets
Stocks	7	160,621	118,067
Debtors	8	146,314	198,023
Cash at bank and in hand		27,438	33,355
		334,373	349,445
Creditors: Amounts falling due within one year	9	(279,640)	(298,431)
Net current assets		54,733	51,014
Total assets less current liabilities		172,924	164,885
Creditors: Amounts falling due after more than one year	9	(88,825)	(89,295)
Provisions for liabilities		(11,110)	(10,095)
Net assets		72,989	65,495
Capital and reserves
Called up share capital		100	100
Profit and loss account		72,889	65,395
Total equity		72,989	65,495

For the financial year ending 31 August 2016 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.

Approved and authorised by the Board on 24 November 2016 and signed on its behalf by:
 

The notes on pages 9 to 13 form an integral part of these financial statements.
Page 6

Agricultural & Mechanical Services Ltd

(Registration number: 06995579)
Balance Sheet as at 31 August 2016

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

Mr D J Smith

Director

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

Mrs B J Smith

Director

The notes on pages 9 to 13 form an integral part of these financial statements.
Page 7

Agricultural & Mechanical Services Ltd

Statement of Changes in Equity for the Year Ended 31 August 2016

	Share capital £	Profit and loss account £	Total £
At 1 September 2015	100	65,395	65,495
Profit for the year	-	7,494	7,494
Total comprehensive income	-	7,494	7,494
At 31 August 2016	100	72,889	72,989

	Share capital £	Profit and loss account £	Total £
At 1 September 2014	100	29,384	29,484
Profit for the year	-	36,011	36,011
Total comprehensive income	-	36,011	36,011
At 31 August 2015	100	65,395	65,495

The notes on pages 9 to 13 form an integral part of these financial statements.
Page 8

Agricultural & Mechanical Services Ltd

Notes to the Financial Statements for the Year Ended 31 August 2016

1	General information

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

The address of its registered office is:
18 Main Road
Threeholes
Wisbech
Cambs
PE14 9JS

These financial statements were authorised for issue by the Board on 24 November 2016.

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 and after eliminating sales within the company. 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 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 income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the Company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date. The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Page 9

Agricultural & Mechanical Services Ltd

Notes to the Financial Statements for the Year Ended 31 August 2016

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
Plant & Machinery	25% Reducing balance
Fixtures & Fittings	25% Reducing balance
Motor Vehicles	25% Reducing balance

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.

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.

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.

Page 10

Agricultural & Mechanical Services Ltd

Notes to the Financial Statements for the Year Ended 31 August 2016

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.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 13 (2015 - 13).

4	Profit before tax

Arrived at after charging/(crediting)

	2016  £	2015  £
Depreciation expense	35,136	27,501

5	Intangible assets

	Development costs  £	Total £
Cost or valuation
At 1 September 2015	5,924	5,924
At 31 August 2016	5,924	5,924
Amortisation
Carrying amount
At 31 August 2016	5,924	5,924
At 31 August 2015	5,924	5,924

Page 11

Agricultural & Mechanical Services Ltd

Notes to the Financial Statements for the Year Ended 31 August 2016

6	Tangible assets

	Land and buildings £	Furniture, fittings and equipment  £	Motor vehicles  £	Other property, plant and equipment  £	Total £
Cost or valuation
At 1 September 2015	10,984	3,087	118,463	27,099	159,633
Additions	-	3,922	36,885	3,248	44,055
Disposals	-	-	(13,524)	-	(13,524)
At 31 August 2016	10,984	7,009	141,824	30,347	190,164
Depreciation
At 1 September 2015	-	1,538	36,214	13,934	51,686
Charge for the year	-	1,368	28,291	4,103	33,762
Eliminated on disposal	-	-	(7,551)	-	(7,551)
At 31 August 2016	-	2,906	56,954	18,037	77,897
Carrying amount
At 31 August 2016	10,984	4,103	84,870	12,310	112,267
At 31 August 2015	10,984	1,549	82,249	13,165	107,947

Included within the net book value of land and buildings above is £10,984 (2015 - £10,984) in respect of freehold land and buildings.
 

7

Stocks

	2016  £	2015  £
Work in progress	70,851	42,397
Finished goods and goods for resale	89,770	75,670
	160,621	118,067

8

Debtors

	Note	2016  £	2015  £
Trade debtors		113,545	196,115
Amounts owed by group undertakings and undertakings in which the company has a participating interest		239	1,739
Other debtors		32,530	169
Total current trade and other debtors		146,314	198,023

Page 12

Agricultural & Mechanical Services Ltd

Notes to the Financial Statements for the Year Ended 31 August 2016

9

Creditors

	Note	2016  £	2015  £
Due within one year
Bank loans and overdrafts	10	69,623	65,316
Trade creditors		132,641	145,925
Taxation and social security		62,983	59,348
Other creditors		14,393	27,842
		279,640	298,431
Due after one year
Loans and borrowings	10	88,825	89,295