M J Stevens Ltd - Period Ending 2018-09-30

Registration number: 06512806

M J Stevens Ltd

Annual Report and Unaudited Filleted Financial Statements

for the Year Ended 30 September 2018

Redwoods
Chartered Certified Accountants
2 Clyst Works
Clyst Road
Topsham
Exeter
Devon
EX3 0DB

M J Stevens Ltd

Contents

Company Information	1
Balance Sheet	2 to 3
Notes to the Financial Statements	4 to 12

M J Stevens Ltd

Company Information

Directors

Mr Louis Peter Greenaway Mr Alan Knowles Mr Nigel Peter Greenaway

Registered office

2 Clyst Works Clyst Road Topsham Exeter Devon EX3 0DB

Accountants

Redwoods Chartered Certified Accountants 2 Clyst Works Clyst Road Topsham Exeter Devon EX3 0DB

Page 1

M J Stevens Ltd

(Registration number: 06512806)
Balance Sheet as at 30 September 2018

	Note	2018 £	2017 £
Fixed assets
Intangible assets	4	1,448,040	1,581,595
Tangible assets	5	86,855	72,029
		1,534,895	1,653,624
Current assets
Stocks	6	11,441	11,115
Debtors	7	2,309,450	3,400,476
Cash at bank and in hand		233,368	45,267
		2,554,259	3,456,858
Creditors: Amounts falling due within one year	8	(590,304)	(952,946)
Net current assets		1,963,955	2,503,912
Total assets less current liabilities		3,498,850	4,157,536
Provisions for liabilities		(16,372)	(11,301)
Net assets		3,482,478	4,146,235
Capital and reserves
Called up share capital	9	100	100
Profit and loss account		3,482,378	4,146,135
Total equity		3,482,478	4,146,235

For the financial year ending 30 September 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.

The notes on pages 4 to 12 form an integral part of these financial statements.

Page 2

M J Stevens Ltd

(Registration number: 06512806)
Balance Sheet as at 30 September 2018

Approved and authorised by the Board on 30 April 2019 and signed on its behalf by:
 

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

Mr Louis Peter Greenaway
Director

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

Mr Alan Knowles
Director

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

Mr Nigel Peter Greenaway
Director

The notes on pages 4 to 12 form an integral part of these financial statements.

Page 3

M J Stevens Ltd

Notes to the Financial Statements for the Year Ended 30 September 2018

1	General information

The company is a private company limited by share capital, incorporated in England. Registered No. 06512806.

The address of its registered office is:
2 Clyst Works
Clyst Road
Topsham
Exeter
Devon
EX3 0DB

The principal place of business is:
Clyst Works
Clyst Road
Topsham EXETER
EX3 0DB

These financial statements were authorised for issue by the Board on 30 April 2019.

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.

The accounts are presented in £ sterling and rounded to £1

Exemption from preparing group accounts

The company has taken advantage of the exemption in section 398 of the Companies Act 2006 from the requirement to prepare consolidated financial statements, on the grounds that it is a small sized group.

Page 4

M J Stevens Ltd

Notes to the Financial Statements for the Year Ended 30 September 2018

Judgements

In the application of the Company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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.

Contract revenue recognition

Turnover represents revenue earned under a variety of contracts to provide services. Revenue is recognised as earned when, and to the extent that, the company obtains the right to consideration in exchange for its performance under these contracts. It is measured at the fair value of the right to consideration, which represents amounts chargeable to customers, including expenses and disbursements but excluding value added tax.

Revenue is recognised as contract activity progresses so that for incomplete contracts it reflects the partial performance of the contractual obligations. For such contracts the amount of revenue reflects the accrual of the right to consideration by reference to the value of the work performed. Revenue not billed to customers is included in debtors and payments on account in excess of the relevant amount of revenue are included in creditors.

Income that is contingent on events outside the control of the company is recognised when the contingent event occurs.

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.

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.

Page 5

M J Stevens Ltd

Notes to the Financial Statements for the Year Ended 30 September 2018

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
Short leasehold property improvements	16.67% straight line basis (over term of lease)
Plant and equipment	20% straight line basis
Computer equipment	33.33% straight line basis
Motor vehicles	25% straight line basis

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 estimated useful life as follows, 20 years is considered a reliable estimate of the useful life of goodwill:

Asset class	Amortisation method and rate
Goodwill	20 years straight line basis, 5 years straight line basis & part fully amortised)

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.

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.

Page 6

M J Stevens Ltd

Notes to the Financial Statements for the Year Ended 30 September 2018

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.

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.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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.

Page 7

M J Stevens Ltd

Notes to the Financial Statements for the Year Ended 30 September 2018

Financial instruments

Classification
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, borrowings from bank and other third parties.
 Recognition and measurement
Debt instruments like loans and other accounts receivable and payable are initially measured at the present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. In the case of a non current outright loan not at market rates, the financial liability is measured, initially and subsequently at the present value of the future payments, discounted at a market rate of interest for a similar debt instrument.
 Impairment
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cashflows, discounted at the asset's original effective interest rate.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amount and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
 

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 26 (2017 - 32).

Page 8

M J Stevens Ltd

Notes to the Financial Statements for the Year Ended 30 September 2018

4	Intangible assets

	Goodwill  £	Total £
Cost or valuation
At 1 October 2017	3,485,209	3,485,209
Additions acquired separately	50,469	50,469
At 30 September 2018	3,535,678	3,535,678
Amortisation
At 1 October 2017	1,903,614	1,903,614
Amortisation charge	184,024	184,024
At 30 September 2018	2,087,638	2,087,638
Carrying amount
At 30 September 2018	1,448,040	1,448,040
At 30 September 2017	1,581,595	1,581,595

Amortisation of intangible assets is displayed in the income statement under the heading of administration expenses.

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

Individually material intangible assets

Goodwill The carrying amount of this asset is £1,448,040 (2017 -£1,581,595) and the remaining amortisation period is 9 and 1/2 years (2017 - 10 and 1/2 years).

Page 9

M J Stevens Ltd

Notes to the Financial Statements for the Year Ended 30 September 2018

5	Tangible assets

	Short leasehold property improvements £	Computer equipment  £	Motor vehicles  £	Plant and equipment  £	Total £
Cost or valuation
At 1 October 2017	3,979	30,718	196,734	100,091	331,522
Additions	-	9,483	37,689	521	47,693
Disposals	-	-	(48,949)	(19,746)	(68,695)
At 30 September 2018	3,979	40,201	185,474	80,866	310,520
Depreciation
At 1 October 2017	2,182	29,740	151,210	76,361	259,493
Charge for the year	360	2,164	19,953	10,386	32,863
Eliminated on disposal	-	-	(48,945)	(19,746)	(68,691)
At 30 September 2018	2,542	31,904	122,218	67,001	223,665
Carrying amount
At 30 September 2018	1,437	8,297	63,256	13,865	86,855
At 30 September 2017	1,797	978	45,524	23,730	72,029

Included within the net book value of land and buildings above is £1,437 (2017 - £1,797) in respect of short leasehold land and buildings.
 

Page 10

M J Stevens Ltd

Notes to the Financial Statements for the Year Ended 30 September 2018

6

Stocks

	2018 £	2017 £
Raw materials and consumables	11,441	11,115

7

Debtors

	Note	2018 £	2017 £
Trade debtors		1,083,799	1,538,992
Amounts owed by group undertakings and undertakings in which the company has a participating interest	12	545,235	634,416
Prepayments		82,948	82,241
Other debtors including contract work in progress		597,468	1,144,827
		2,309,450	3,400,476

Details of non-current trade and other debtors

£202,141 (2017 -£247,355) of Trade debtors is classified as non current. Trade debtors for retentions not due to be paid within one year.

8

Creditors

Creditors: amounts falling due within one year

	2018 £	2017 £
Due within one year
Trade creditors	269,487	404,936
Taxation and social security	99,087	127,832
Accruals and deferred income	204,582	416,790
Other creditors	17,148	3,388
	590,304	952,946

9	Share capital

Allotted, called up and fully paid shares

	2018		2017
	No.	£	No.	£
Ordinary shares of £1 each	100	100	100	100

Page 11

M J Stevens Ltd

Notes to the Financial Statements for the Year Ended 30 September 2018

10

Reserves

11	Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £76,469 (2017 - £110,636). The company is utilising some commercial vehicles, that are being rented on a lease hire basis.

12	Related party transactions

Loans to related parties

2018	Parent £	Key management £
At start of period	634,416	10,000
Advanced	545,235	-
Repaid	(634,416)	(10,000)
At end of period	545,235	-

2017	Parent £
Advanced	634,416

Terms of loans to related parties

The company's parent has been provided with a loan from the company during the year. This loan is repayable on demand and interest-free.
 

Page 12