Contracts Engineering Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 03560407 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

FOR

CONTRACTS ENGINEERING LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

T D Barratt

C I M Barratt

M Blenkinsop

SECRETARY:

T D Barratt

REGISTERED OFFICE:

Crowe U.K. LLP

Riverside House

40-46 High Street

Maidstone

Kent

ME14 1JH

REGISTERED NUMBER:

03560407 (England and Wales)

ACCOUNTANTS:

Crowe U.K. LLP

4 Mount Ephraim Road

Tunbridge Wells

Kent

TN1 1EE

FIXED ASSETS

Intangible assets

4

-

-

Tangible assets

5

538,153

467,535

538,153

467,535

CURRENT ASSETS

Stocks

13,094

26,774

Debtors

6

649,282

654,735

Cash at bank and in hand

12,590

25,274

674,966

706,783

CREDITORS

Amounts falling due within one year

7

684,242

646,115

NET CURRENT (LIABILITIES)/ASSETS

(9,276

)

60,668

TOTAL ASSETS LESS CURRENT LIABILITIES

528,877

528,203

CREDITORS

Amounts falling due after more than one year

8

(164,522

)

(223,105

)

PROVISIONS FOR LIABILITIES

(30,645

)

-

NET ASSETS

333,710

305,098

CAPITAL AND RESERVES

Called up share capital

10

101

101

Share premium

11

97,795

97,795

Retained earnings

11

235,814

207,202

SHAREHOLDERS' FUNDS

333,710

305,098

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2018 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors on 28 May 2019 and were signed on its behalf by:

T D Barratt - Director

1.	STATUTORY INFORMATION

Contracts Engineering Limited is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

Accounting standards require the directors to consider the appropriateness of the going concern basis when

preparing the financial statements. The directors confirm that they consider that the going concern basis remains

appropriate. The directors believe that the company has sufficient resources to continue in operational existence

for the foreseeable future. The directors believe this to be the case as the company has positive reserves and

cash balances. Thus they continue to adopt the going concern basis of accounting in preparing the annual

financial statements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods

has transferred to the buyer. This is usually at the point that completed goods have been delivered to the

customer, or held in warehouse at the customers' instruction awaiting future delivery.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost

less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Improvements to property

-

20% on reducing balance

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and

slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to

the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the

balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws

that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal

of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those

held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance

leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element

of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

Debtors

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

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice

of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three

months from the date of acquisition and that are readily convertible to known amounts of cash with no significant

risk of change in value.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial

assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third

parties, loans to related parties and investments in non-puttable ordinary shares.

Creditors

Short term creditors are measured at the transaction price.

Financial reporting standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial

statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic

of Ireland":

- the requirements of Section 7 Statement of Cash Flows;

- the requirements of Section 3 Financial Statement Presentation paragraph 3.17 (d);

- the requirements of Section 11 Financial Instruments paragraphs 11.39 to 11.48A;

- the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.29;

- the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;

- the requirements of Section 33 Related Party Disclosures paragraph 33.7.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 32 (2017 - 36 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 January 2018

and 31 December 2018

450,000

AMORTISATION

At 1 January 2018

and 31 December 2018

450,000

NET BOOK VALUE

At 31 December 2018

-

At 31 December 2017

-

5.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

£

£

£

COST

At 1 January 2018

4,927

1,083,261

83,217

Additions

30,192

89,667

903

At 31 December 2018

35,119

1,172,928

84,120

DEPRECIATION

At 1 January 2018

4,432

643,013

73,898

Charge for year

834

70,483

2,496

At 31 December 2018

5,266

713,496

76,394

NET BOOK VALUE

At 31 December 2018

29,853

459,432

7,726

At 31 December 2017

495

440,248

9,319

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 January 2018

8,500

31,963

1,211,868

Additions

19,551

14,259

154,572

At 31 December 2018

28,051

46,222

1,366,440

DEPRECIATION

At 1 January 2018

8,134

14,856

744,333

Charge for year

4,164

5,977

83,954

At 31 December 2018

12,298

20,833

828,287

NET BOOK VALUE

At 31 December 2018

15,753

25,389

538,153

At 31 December 2017

366

17,107

467,535

The net book value of assets held under finance leases or hire purchase contracts, included above is £200,521

(2017: £201,698).

6.

DEBTORS

2018

2017

£

£

Amounts falling due within one year:

Trade debtors

444,925

479,891

Amounts owed by group undertakings

109,175

114,179

Tax

47,045

49,640

Prepayments and accrued income

21,137

11,025

622,282

654,735

Amounts falling due after more than one year:

Other debtors

27,000

-

Aggregate amounts

649,282

654,735

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Other loans

27,179

27,179

Hire purchase contracts (see note 9)

46,044

61,192

Trade creditors

310,852

256,368

Social security and other taxes

21,856

33,192

VAT

42,391

59,674

Other creditors

14,599

586

Invoice discounting

212,450

198,934

Net wages

-

365

Accruals and deferred income

8,871

8,625

684,242

646,115

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2018

2017

£

£

Hire purchase contracts (see note 9)

137,343

168,747

Other creditors

27,179

54,358

164,522

223,105

Amounts falling due in more than five years:

Repayable by instalments

Hire purchase

5,303

23,233

9.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2018

2017

£

£

Net obligations repayable:

Within one year

46,044

61,192

Between one and five years

132,040

145,514

In more than five years

5,303

23,233

183,387

229,939

Non-cancellable

operating leases

2018

2017

£

£

Within one year

92,346

57,631

Between one and five years

-

10,483

In more than five years

736,767

-

829,113

68,114

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2018

2017

value:

£

£

101

Ordinary

1.00

101

101

11.

RESERVES

Retained

Share

earnings

premium

Totals

£

£

£

At 1 January 2018

207,202

97,795

304,997

Profit for the year

28,612

28,612

At 31 December 2018

235,814

97,795

333,609

12.	RELATED PARTY DISCLOSURES

Blenkinsop Consulting Limited

A company under common control

During the year the company purchased services from Blenkinsop Consulting Limited with a value of £10,150

(2017: £7,674). At the balance sheet date, the company owed Blenkinsop Consulting Limited £6,750 (2017:

£6,500).

13.	ULTIMATE CONTROLLING PARTY

The immediate controlling party is BAMUK Industrial Limited. The directors consider there is no ultimate

controlling party.