Accountants

Mitchell Meredith Limited Chartered Accountants The Orbit Business Centre Rhydycar Park Merthyr Tydfil Mid Glamorgan CF48 1DL

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Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Abba Scrap Metals Limited
for the Year Ended 31 December 2016

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Abba Scrap Metals Limited for the year ended 31 December 2016 as set out on pages 3 to 8 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
http://www.icaew.com/en/members/regulations-standards-and-guidance/.

This report is made solely to the Board of Directors of Abba Scrap Metals Limited, 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 Abba Scrap Metals Limited and state those matters that we have agreed to state to the Board of Directors of Abba Scrap Metals Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Abba Scrap Metals Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Abba Scrap Metals Limited 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 Abba Scrap Metals Limited. You consider that Abba Scrap Metals Limited 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 Abba Scrap Metals Limited. 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.

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

Mitchell Meredith Limited
Chartered Accountants
The Orbit Business Centre
Rhydycar Park
Merthyr Tydfil
Mid Glamorgan
CF48 1DL

14 June 2017

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Abba Scrap Metals Limited

(Registration number: 06030263)
Balance Sheet as at 31 December 2016

	Note	2016 £	2015 £
Fixed assets
Intangible assets	3	35,000	38,500
Tangible assets	4	127,909	151,320
		162,909	189,820
Current assets
Stocks	5	10,650	10,200
Debtors	6	1,900	2,229
Cash at bank and in hand		70,899	9,159
		83,449	21,588
Creditors: Amounts falling due within one year	7	(100,188)	(81,400)
Net current liabilities		(16,739)	(59,812)
Total assets less current liabilities		146,170	130,008
Creditors: Amounts falling due after more than one year	7	(15,019)	(19,870)
Provisions for liabilities		(23,968)	(28,329)
Net assets		107,183	81,809
Capital and reserves
Called up share capital		2	2
Profit and loss account		107,181	81,807
Total equity		107,183	81,809

The notes on pages 5 to 8 form an integral part of these financial statements.

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Abba Scrap Metals Limited

(Registration number: 06030263)
Balance Sheet as at 31 December 2016

For the financial year ending 31 December 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.

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.

Approved and authorised by the Board on 14 June 2017 and signed on its behalf by:
 

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

Mr A Humphreys

Director

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

Mr C D Jenkins

Director

The notes on pages 5 to 8 form an integral part of these financial statements.

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Abba Scrap Metals Limited

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

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:
St David's House
48 Free Street
Brecon
Powys
LD3 7BN
UK

The principal place of business is:
Unit 4
Pengarnddu Industrial Estate
Dowlais
Merthyr Tydfil
Mid Glamorgan
CF48 2TA
UK

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.

Going concern

At the balance sheet date the company had net current liabilities of £16,739 (2015 - £59,812). However creditors includes loans from the directors of £42,425 (2015 - £47,175). On the basis of their continued support, the directors consider it appropriate to prepare these accounts on the going concern basis.

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 and machinery	15% on net book value

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Abba Scrap Metals Limited

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

Fixtures and fittings	15% on net book value
Motor vehicles	25% on net book value
Office equipment	15% on net book value

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	Straight line over 20 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.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

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.

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.

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Abba Scrap Metals Limited

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

3	Intangible assets

	Goodwill  £	Total £
Cost or valuation
At 1 January 2016	70,000	70,000
At 31 December 2016	70,000	70,000
Amortisation
At 1 January 2016	31,500	31,500
Amortisation charge	3,500	3,500
At 31 December 2016	35,000	35,000
Carrying amount
At 31 December 2016	35,000	35,000
At 31 December 2015	38,500	38,500

4	Tangible assets

	Fixtures, fittings and equipment £	Motor vehicles  £	Plant and machinery £	Total £
Cost or valuation
At 1 January 2016	31,562	16,913	324,435	372,910
At 31 December 2016	31,562	16,913	324,435	372,910
Depreciation
At 1 January 2016	19,036	9,778	192,776	221,590
Charge for the year	1,879	1,783	19,749	23,411
At 31 December 2016	20,915	11,561	212,525	245,001
Carrying amount
At 31 December 2016	10,647	5,352	111,910	127,909
At 31 December 2015	12,526	7,135	131,659	151,320

5

Stocks

	2016 £	2015 £
Stocks	10,650	10,200

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Abba Scrap Metals Limited

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

6

Debtors

	2016 £	2015 £
Trade debtors	588	-
Prepayments	1,312	2,229
Total current trade and other debtors	1,900	2,229

7

Creditors

	Note	2016 £	2015 £
Due within one year
Bank loans and overdrafts	8	3,900	3,900
Trade creditors		7,876	2,359
Amounts owed to group undertakings and undertakings in which the company has a participating interest		42,425	47,175
Taxation and social security		22,475	10,444
Other creditors		23,512	17,522
		100,188	81,400
Due after one year
Loans and borrowings	8	11,248	15,433
Deferred income		3,771	4,437
		15,019	19,870