A & B Engineering (Southern) Limited

trading as A&B Engineering (Southern) Ltd

Contents

Company Information	1
Balance Sheet	2 to 3
Notes to the Financial Statements	4 to 10

A & B Engineering (Southern) Limited

trading as A&B Engineering (Southern) Ltd

Company Information

Directors

Mr SP Smallcorn Mr A Smallcorn

Company secretary

Mr SP Smallcorn

Registered office

Unit 10 Wares Farm Redwall Lane Linton Kent ME17 4BB

Page 1

A & B Engineering (Southern) Limited

trading as A&B Engineering (Southern) Ltd

(Registration number: 03144094)
Balance Sheet as at 31 January 2017

	Note	2017 £	2016 £
Fixed assets
Tangible assets	5	249,990	314,166
Current assets
Stocks	6	21,843	18,808
Debtors	7	166,206	190,923
Cash at bank and in hand		49,485	91,327
		237,534	301,058
Creditors: Amounts falling due within one year	8	(188,155)	(185,265)
Net current assets		49,379	115,793
Total assets less current liabilities		299,369	429,959
Creditors: Amounts falling due after more than one year	8	(134,466)	(219,829)
Provisions for liabilities		(46,837)	(58,978)
Net assets		118,066	151,152
Capital and reserves
Called up share capital		120	120
Share premium reserve		(118)	(118)
Profit and loss account		118,064	151,150
Total equity		118,066	151,152

For the financial year ending 31 January 2017 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.

The notes on pages 4 to 10 form an integral part of these financial statements.

Page 2

A & B Engineering (Southern) Limited

trading as A&B Engineering (Southern) Ltd

(Registration number: 03144094)
Balance Sheet as at 31 January 2017

Approved and authorised by the Board on 30 October 2017 and signed on its behalf by:
 

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

Mr SP Smallcorn

Company secretary and director

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

Mr A Smallcorn

Director

The notes on pages 4 to 10 form an integral part of these financial statements.

Page 3

A & B Engineering (Southern) Limited

trading as A&B Engineering (Southern) Ltd

Notes to the Financial Statements for the Year Ended 31 January 2017

1	General information

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

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 2017.

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.

Page 4

A & B Engineering (Southern) Limited

trading as A&B Engineering (Southern) Ltd

Notes to the Financial Statements for the Year Ended 31 January 2017

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.

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.

Page 5

A & B Engineering (Southern) Limited

trading as A&B Engineering (Southern) Ltd

Notes to the Financial Statements for the Year Ended 31 January 2017

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.

Page 6

A & B Engineering (Southern) Limited

trading as A&B Engineering (Southern) Ltd

Notes to the Financial Statements for the Year Ended 31 January 2017

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.

3	Profit before tax

Arrived at after charging/(crediting)

	2017 £	2016 £
Depreciation expense	91,825	109,635

Page 7

A & B Engineering (Southern) Limited

trading as A&B Engineering (Southern) Ltd

Notes to the Financial Statements for the Year Ended 31 January 2017

4	Intangible assets

	Goodwill  £	Total £
Cost or valuation
At 1 February 2016	40,000	40,000
At 31 January 2017	40,000	40,000
Amortisation
At 1 February 2016	40,000	40,000
At 31 January 2017	40,000	40,000
Carrying amount
At 31 January 2017	-	-

The aggregate amount of research and development expenditure recognised as an expense during the period is £62,784 (2016 - £73,663).
 

Page 8

A & B Engineering (Southern) Limited

trading as A&B Engineering (Southern) Ltd

Notes to the Financial Statements for the Year Ended 31 January 2017

5	Tangible assets

	Furniture, fittings and equipment  £	Motor vehicles  £	Other property, plant and equipment  £	Total £
Cost or valuation
At 1 February 2016	27,741	52,455	1,023,468	1,103,664
Additions	350	-	27,300	27,650
At 31 January 2017	28,091	52,455	1,050,768	1,131,314
Depreciation
At 1 February 2016	25,736	34,955	728,807	789,498
Charge for the year	586	10,750	80,490	91,826
At 31 January 2017	26,322	45,705	809,297	881,324
Carrying amount
At 31 January 2017	1,769	6,750	241,471	249,990
At 31 January 2016	2,005	17,500	294,661	314,166

6

Stocks

	2017 £	2016 £
Work in progress	8,775	13,984
Other inventories	13,068	4,824
	21,843	18,808

7

Debtors

	2017 £	2016 £
Trade debtors	152,000	149,601
Other debtors	14,206	41,322
	166,206	190,923

Page 9

A & B Engineering (Southern) Limited

trading as A&B Engineering (Southern) Ltd

Notes to the Financial Statements for the Year Ended 31 January 2017

8

Creditors

	Note	2017 £	2016 £
Due within one year
Bank loans and overdrafts	9	114,654	117,335
Trade creditors		43,406	32,469
Taxation and social security		27,862	31,801
Other creditors		2,233	3,660
		188,155	185,265
Due after one year
Loans and borrowings	9	134,466	219,829