Nixon Engineering Limited - Period Ending 2019-03-28
Nixon Engineering Limited - Period Ending 2019-03-28
REGISTRAR OF COMPANIES |
Registration number:
1 September 2018 to
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Nixon Engineering Limited
Contents
Accountants' Report |
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Balance Sheet |
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Notes to the Financial Statements |
Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Nixon Engineering Limited
for the Period Ended 28 March 2019
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Nixon Engineering Limited for the period ended 28 March 2019 as set out on pages 2 to 9 from the company's accounting records and from information and explanations you have given us.
As a 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/membershandbook.
This report is made solely to the Board of Directors of Nixon Engineering Limited, as a body, in accordance with the terms of our engagement letter dated 25 March 2014. Our work has been undertaken solely to prepare for your approval the accounts of Nixon Engineering Limited and state those matters that we have agreed to state to the Board of Directors of Nixon Engineering 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 Nixon Engineering Limited and its Board of Directors as a body for our work or for this report.
It is your duty to ensure that Nixon Engineering 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 Nixon Engineering Limited. You consider that Nixon Engineering Limited is exempt from the statutory audit requirement for the period.
We have not been instructed to carry out an audit or a review of the accounts of Nixon Engineering 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.
Chartered Accountants
Montgomery Way
Rosehill Estate
CARLISLE
CA1 2RW
Page 1 |
Nixon Engineering Limited
(Registration number: 00695038)
Balance Sheet as at 28 March 2019
Note |
28 March 2019 |
31 August 2018 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash and cash equivalents |
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Creditors: Amounts falling due within one year |
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Net current assets/(liabilities) |
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Total assets less current liabilities |
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Provisions for liabilities |
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Net assets |
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Capital and reserves |
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Allotted, called up and fully paid share capital |
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Revaluation reserve |
133,633 |
135,887 |
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Profit and loss account |
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Total equity |
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Page 2 |
Nixon Engineering Limited
(Registration number: 00695038)
Balance Sheet as at 28 March 2019 (continued)
For the financial period ending 28 March 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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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 prepared and 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
.........................................
N Byers
Director
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P Byers
Company secretary and director
Page 3 |
Nixon Engineering Limited
Notes to the Financial Statements for the Period from 1 September 2018 to 28 March 2019
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
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 |
Nixon Engineering Limited
Notes to the Financial Statements for the Period from 1 September 2018 to 28 March 2019 (continued)
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 balance sheet 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 equipment |
15% reducing balance basis |
Land and buildings |
Straight line over the length of the lease |
Furniture, fittings and office equipment |
15% reducing balance basis and 3 years straight line basis |
Motor vehicles |
25% reducing balance basis |
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 the sale of goods 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.
Page 5 |
Nixon Engineering Limited
Notes to the Financial Statements for the Period from 1 September 2018 to 28 March 2019 (continued)
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors 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 where due after more than one year.
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.
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.
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 6 |
Nixon Engineering Limited
Notes to the Financial Statements for the Period from 1 September 2018 to 28 March 2019 (continued)
Tangible assets |
Land and buildings |
Plant and equipment |
Motor vehicles |
Furniture, fittings and office equipment |
Total |
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Cost or valuation |
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At 1 September 2018 |
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At 28 March 2019 |
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Depreciation |
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At 1 September 2018 |
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Charge for the period |
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At 28 March 2019 |
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Carrying amount |
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At 28 March 2019 |
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At 31 August 2018 |
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Page 7 |
Nixon Engineering Limited
Notes to the Financial Statements for the Period from 1 September 2018 to 28 March 2019 (continued)
Debtors |
28 March 2019 |
31 August 2018 |
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Trade debtors |
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Other debtors |
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Creditors |
Note |
28 March 2019 |
31 August 2018 |
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Due within one year |
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Loans and borrowings |
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Trade creditors |
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Taxation and social security |
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Corporation tax liability |
14,842 |
11,576 |
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Other creditors |
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Reserves |
A reconciliation of the opening and closing revaluation reserve for the current period is as follows:
Revaluation reserve |
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Brought forward |
135,887 |
Depreciation transfer |
(2,254) |
Other movement |
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Deferred tax |
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Carried forward |
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Deferred tax has been provided on previous revaluation uplifts of land and buildings, specifically the deferred tax movement in the current financial year primarily relates to a change in tax rates.
On the transition date to Financial Reporting Standard 102, 1 September 2015, the company elected to apply the transitional option to take previous revalued land and buildings as deemed cost, with the cost model applied going forward.
Page 8 |
Nixon Engineering Limited
Notes to the Financial Statements for the Period from 1 September 2018 to 28 March 2019 (continued)
Loans and borrowings |
28 March 2019 |
31 August 2018 |
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Current loans and borrowings |
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Bank overdrafts |
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Other borrowings |
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Current loans and borrowings includes the following liabilities, on which security has been given by the company:
28 March 2019 |
31 August 2018 |
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Bank overdrafts |
6,711 |
19,484 |
Bank overdrafts are secured by fixed and floating charges over the company.
Page 9 |