The Mortar and Screed Company Limited - Period Ending 2018-12-31

Registration number: 08873886

The Mortar and Screed Company Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2018

The Mortar and Screed Company Limited

Contents

Company Information	1
Accountants' Report	2
Balance Sheet	3 to 4
Notes to the Financial Statements	5 to 10

The Mortar and Screed Company Limited

Company Information

Directors

R M Parton P Padfield

Registered office

The Oaklands Station Road Admaston Telford Shropshire TF5 0AN

Accountants

CBSL Accountants Limited Chartered Accountants Rowan House North 1 The Professional Quarter Shrewsbury Business Park Shrewsbury Shropshire SY2 6LG

Page 1

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
The Mortar and Screed Company Limited
for the Year Ended 31 December 2018

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of The Mortar and Screed Company Limited for the year ended 31 December 2018 as set out on pages 3 to 10 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 The Mortar and Screed Company 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 The Mortar and Screed Company Limited and state those matters that we have agreed to state to the Board of Directors of The Mortar and Screed Company 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 The Mortar and Screed Company Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that The Mortar and Screed Company 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 The Mortar and Screed Company Limited. You consider that The Mortar and Screed Company 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 The Mortar and Screed Company 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.

CBSL Accountants Limited
Chartered Accountants
Rowan House North
1 The Professional Quarter
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG

24 September 2019

Page 2

The Mortar and Screed Company Limited

(Registration number: 08873886)
Balance Sheet as at 31 December 2018

	Note	2018 £	2017 £
Fixed assets
Tangible assets	4	3,400,931	3,333,528
Current assets
Debtors	5	1,455,912	1,023,408
Cash at bank and in hand		122,677	187,921
		1,578,589	1,211,329
Creditors: Amounts falling due within one year	6	(3,111,070)	(2,660,117)
Net current liabilities		(1,532,481)	(1,448,788)
Total assets less current liabilities		1,868,450	1,884,740
Creditors: Amounts falling due after more than one year	6	(667,945)	(1,059,312)
Provisions for liabilities		(180,000)	(157,000)
Net assets		1,020,505	668,428
Capital and reserves
Called up share capital	7	240	240
Profit and loss account		1,020,265	668,188
Total equity		1,020,505	668,428

For the financial year ending 31 December 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 5 to 10 form an integral part of these financial statements.

Page 3

The Mortar and Screed Company Limited

(Registration number: 08873886)
Balance Sheet as at 31 December 2018

Approved and authorised by the Board on 24 September 2019 and signed on its behalf by:
 

R M Parton
Director

The notes on pages 5 to 10 form an integral part of these financial statements.

Page 4

The Mortar and Screed Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2018

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:
The Oaklands
Station Road
Admaston
Telford
Shropshire
TF5 0AN

The principal place of business is:
Calf Heath Quarry
Watling Street
Cannock
Staffordshire
United Kingdom

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.

Page 5

The Mortar and Screed Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2018

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.

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
Leasehold property costs	10% straight line
Plant and machinery	10% straight line
Motor lorries	16.67% - 20% straight line
Motor cars	15% straight line
Fixtures and fittings	3 years straight line

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.

Defined contribution pension obligation

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the profit and loss in the period to which they relate.

Page 6

The Mortar and Screed Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2018

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 41 (2017 - 30).

4	Tangible assets

	Leasehold property £	Furniture, fittings and equipment  £	Motor lorries  £	Motor cars  £
Cost or valuation
At 1 January 2018	579,496	27,210	2,802,579	34,289
Additions	-	4,122	483,491	-
Transfers	(568,891)	-	-	-
At 31 December 2018	10,605	31,332	3,286,070	34,289
Depreciation
At 1 January 2018	28,456	7,357	463,197	4,519
Charge for the year	1,767	9,860	488,761	5,145
Transfers	(28,456)	-	-	-
At 31 December 2018	1,767	17,217	951,958	9,664
Carrying amount
At 31 December 2018	8,838	14,115	2,334,112	24,625
At 31 December 2017	551,040	19,853	2,339,382	29,770

Page 7

The Mortar and Screed Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2018

	Other property, plant and equipment  £	Total £
Cost or valuation
At 1 January 2018	515,166	3,958,740
Additions	197,325	684,938
Transfers	568,891	-
At 31 December 2018	1,281,382	4,643,678
Depreciation
At 1 January 2018	121,683	625,212
Charge for the year	112,002	617,535
Transfers	28,456	-
At 31 December 2018	262,141	1,242,747
Carrying amount
At 31 December 2018	1,019,241	3,400,931
At 31 December 2017	393,483	3,333,528

Included within the net book value of land and buildings above is £8,838 (2017 - £551,040) in respect of short leasehold land and buildings.
 

Included in the carrying value of tangible fixed assets are assets held under finance leases with a net book value at the year end of £1,962,230 (2017 - £2,344,189). The depreciation charge for the year on these assets amounted to £347,387 (2017 - £320,442).

Following a review of the registers, £568,891 of items previously included at cost in Leasehold property have been reclassified as Other property, plant and equipment. The depreciation rate applied remains the same.

5

Debtors

	2018 £	2017 £
Trade debtors	1,211,523	827,956
Prepayments	103,956	70,629
Other debtors	140,433	124,823
	1,455,912	1,023,408

Page 8

The Mortar and Screed Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2018

6

Creditors

Creditors: amounts falling due within one year

	Note	2018 £	2017 £
Due within one year
Bank loans and overdrafts	8	905,095	767,344
Trade creditors		573,294	359,528
Taxation and social security		165,357	24,676
Accruals and deferred income		62,512	35,386
Other creditors		1,404,812	1,473,183
		3,111,070	2,660,117

Creditors: amounts falling due after more than one year

	Note	2018 £	2017 £
Due after one year
Loans and borrowings	8	667,945	1,059,312

7	Share capital

Allotted, called up and fully paid shares

	2018		2017
	No.	£	No.	£
Ordinary A' of £1 each	120	120	120	120
Ordinary 'B' of £1 each	120	120	120	120
	240	240	240	240

Page 9

The Mortar and Screed Company Limited

Notes to the Financial Statements for the Year Ended 31 December 2018

8	Loans and borrowings

	2018 £	2017 £
Non-current loans and borrowings
Finance lease liabilities	667,945	1,059,312

	2018 £	2017 £
Current loans and borrowings
Finance lease liabilities	905,095	767,344

The finance lease liabilities are secured.

9	Related party transactions

Summary of transactions with entities with joint control or significant interest

Directors advances.
 At the year end the directors loan account was overdrawn by £96,651 (2017 - £92,280). No interest is charged on the loan.
 

Summary of transactions with other related parties

R M Parton has an interest in all of the Companies listed below:-

 Monies due to related parties at the year end were as follows :-

Staffordshire Sand and Gravel Company Limited £32,699 (2017 - £32,699)
Salop Sand and Gravel Supply Company Limited £1,305,509 (2017 - £1,440,442)
SSG Haulage Limited £536 (2017 - £42)

Monies due from related parties at the year end amounted to :-

Wildmoor Quarry Products Limited £13,328 (2017 - £7,596)











 

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