ACCOUNTS - Final Accounts

Registered number: 06444920

ABSOLUTE MECHANICAL LTD

UNAUDITED

DIRECTORS REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2017

ABSOLUTE MECHANICAL LIMITED

REGISTERED NUMBER: 06444920

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2017

		2017		2016
Note		£		£

Fixed assets
Tangible assets	4		117,567		117,146
			117,567		117,146
Current assets
Stocks	5	1,500		1,500
Debtors: amounts falling due within one year	6	111,302		123,789
Cash at bank and in hand		152,690		171,974
		265,492		297,263
Creditors: amounts falling due within one year	7	(90,437)		(111,419)
Net current assets			175,055		185,844
Total assets less current liabilities			292,622		302,990
Provisions for liabilities
Deferred tax	8	(5,279)		(4,986)
			(5,279)		(4,986)
Net assets			287,343		298,004

Capital and reserves
Called up share capital	101	101
Profit and loss account	287,242	297,903
	287,343	298,004

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ABSOLUTE MECHANICAL LIMITED

REGISTERED NUMBER: 06444920

STATEMENT OF FINANCIAL POSITION (CONTINUED)

AS AT 31 DECEMBER 2017

The director considers that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

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

The Company has opted not to file the income statement in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

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

J Hayday

Director

Date: 18 May 2018

The notes on pages 3 to 8 form part of these financial statements.

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ABSOLUTE MECHANICAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2017

1.	General information

Absolute Mechanical Limited a private company limited by shares and incorporated in England and Wales, registration number 06444920. The registered office is Pear Tree Farm, The Street, Weybread, Diss, Norfolk, IP21 5TH.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention and in accordance with Section 1A of Financial Reporting Sandard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The financial statements are presented in Sterling (£).
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

2.2

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of turnover can be measured reliably;

∙it is probable that the Company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.3

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

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ABSOLUTE MECHANICAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2017

2.Accounting policies (continued)

2.3

Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Plant & machinery	-	20% reducing balance
Motor vehicles	-	25% reducing balance
Improvements to Property	-	20% reducing balance
Office equipment	-	20% reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Income statement.

2.4

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first outbasis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is 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.

2.5

Debtors

Short term debtors are measured at transaction price, less any impairment.

2.6

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

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ABSOLUTE MECHANICAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2017

2.Accounting policies (continued)

2.7

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Income statement, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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 income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of financial position date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Employees

The average monthly number of employees, including directors, during the year was 2 (2016 - 2).

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		ABSOLUTE MECHANICAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017

	4.	Tangible fixed assets

	Freehold property	Plant & machinery	Motor vehicles	Improvements to Property	Office equipment	Total
	£	£	£	£	£	£
Cost or valuation
At 1 January 2017	71,505	22,668	72,264	246	2,971	169,654
Additions	-	794	14,163	-	-	14,957
At 31 December 2017	71,505	23,462	86,427	246	2,971	184,611
Depreciation
At 1 January 2017	-	12,367	38,219	145	1,777	52,508
Charge for the year on owned assets	-	2,224	12,053	20	239	14,536
At 31 December 2017	-	14,591	50,272	165	2,016	67,044
Net book value
At 31 December 2017	71,505	8,871	36,155	81	955	117,567
At 31 December 2016	71,505	10,301	34,045	101	1,194	117,146

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ABSOLUTE MECHANICAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2017

4.Tangible fixed assets (continued)

The net book value of land and buildings may be further analysed as follows:
	2017	2016
	£	£

Freehold	71,505	71,505
	71,505	71,505

5.	Stocks
		2017	2016
		£	£

Raw materials and consumables	1,500	1,500
	1,500	1,500

Debtors

					2017	2016
					£	£


Trade debtors	107,363	116,753
Other debtors	-	1,938
Prepayments and accrued income	3,939	5,098
	111,302	123,789

7.	Creditors: Amounts falling due within one year
		2017	2016
		£	£

Trade creditors	56,401	54,206
Corporation tax	12,696	18,347
Other taxation and social security	20,064	30,939
Other creditors	176	6,314
Accruals and deferred income	1,100	1,613
	90,437	111,419

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ABSOLUTE MECHANICAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2017

8.	Deferred taxation

	2017	2016
	£	£

At beginning of year	(4,986)	(7,245)
Charged to profit or loss	(293)	2,259
At end of year	(5,279)	(4,986)

The provision for deferred taxation is made up as follows:
	2017	2016
	£	£

	Accelerated capital allowances	(5,279)	(4,986)
		(5,279)	(4,986)

9.	First time adoption of FRS 102

The policies applied under the entity's previous accounting framework are not materially different to FRS 102 and have not impacted on equity or profit or loss.

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