| Mechanics Centre Limited |
| Notes to the Accounts |
| for the year ended 31 March 2019 |
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| 1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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The accounts are in respect of the year ended 31 March 2019 with comparative figures for the year to 31 March 2018 treating the company as a going concern. |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Donations and Fees |
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The balance of donations and fees over expenditure is carried forward in a donations fund representing initial monies accumulated towards the premium costs of the premises. |
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Grant Funding |
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Grants are credited to Profit and Loss Account over the respective periods of depreciation applied to the Tangible Fixed Assets they have financed, being Décor, Designs, Refurbishment and lease premium. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Premium on leases |
Over the period of 40 years (previously over the lease 125 years) |
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Refurbishment costs |
Over 5 years |
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Decorating & Designs |
Over 10 years |
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Depreciation is provided on other Tangible Fixed Assets at 20% to 33.3% p.a. |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. 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, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Pensions |
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The company operates a defined contribution pension scheme. Contributions are charged to the Profit and Loss Account as they become payable in accordance with the rules of the scheme. |
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Operating profit |
2019 |
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2018 |
| £ |
£ |
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This is stated after charging: |
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Depreciation of owned fixed assets |
2,501 |
|
2,284 |
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| 2 |
Tangible fixed assets |
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Land and buildings |
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Plant and machinery etc |
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Total |
| £ |
£ |
£ |
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Cost |
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At 1 April 2018 |
63,223 |
|
210,367 |
|
273,590 |
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Additions |
- |
|
15,286 |
|
15,286 |
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At 31 March 2019 |
63,223 |
|
225,653 |
|
288,876 |
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Depreciation |
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At 1 April 2018 |
19,943 |
|
202,157 |
|
222,100 |
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Charge for the year |
1,580 |
|
921 |
|
2,501 |
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At 31 March 2019 |
21,523 |
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203,078 |
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224,601 |
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Net book value |
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At 31 March 2019 |
41,700 |
|
22,575 |
|
64,275 |
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At 31 March 2018 |
43,280 |
|
8,210 |
|
51,490 |
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Cost of Land & Buildings is the initial premium on the lease. |
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The company together with the Mechanics Centre Museum of Labour and Trades' Union History Trust Limited has authorised and contracted for capital expenditure of £Nil (2018 £Nil). |
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| 3 |
Debtors |
2019 |
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2018 |
| £ |
£ |
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Trade debtors |
42,903 |
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33,338 |
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Other debtors |
2,063 |
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2,307 |
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44,966 |
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35,645 |
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| 4 |
Creditors: amounts falling due within one year |
2019 |
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2018 |
| £ |
£ |
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Trade creditors |
16,174 |
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17,302 |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest - "The Trust" (note 7) |
|
28,013 |
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20,053 |
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Other taxes and social security costs |
4,717 |
|
2,244 |
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Other creditors |
25,527 |
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16,672 |
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74,431 |
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56,271 |
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| 5 |
Creditors: amounts falling due after one year |
2019 |
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2018 |
| £ |
£ |
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Donations Fund |
22,547 |
|
23,153 |
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Balance brought forward |
23,153 |
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23,759 |
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Credit to Profit and Loss Account |
(606) |
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(606) |
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Balance carried forward |
22,547 |
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23,153 |
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| 6 |
Future commitments |
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The company has entered into a lease with the Mechanics Centre Museum of Labour and Trades' Union History Trust - "The Trust" a registered Charity holding a similar lease from Manchester City Council. The term is 125 years at a peppercorn rent from 1989. The companies also pay ongoing service and maintenance charges for the building and common parts to Manchester City Council in total £25,557 (2018 £32,420) with Mechanics Centre share based upon the services utilised by it - presently 80%.(2018 80%). |
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Manchester City Council has notified additional service charge cost of £557 for 2018/19 and no other provision has been made if further arrears arise. |
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| 7 |
Related party transactions |
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The company has made a gross covenant under Gift Aid to the Mechanics Centre Museum of Labour and Trades' Union History Trust Limited - "The Trust" of £34,781 (2018 £22,600). Other related party transactions are shown in notes 2, 4 and 6. It is also noted that Directors represent Trade Unions who use the Company's conference facilities. The charges made to the Trade Unions are on a commercial basis. The room rental turnover to Trade Unions amounts to £ 24,332 (2018 £26,673). The amount owed to The Trust due to recharges of insurance, rates and water charged initially to The Trust amounts to £28,013 (2018 £20,053). The amount owed by The Trust to the "Centre" is £Nil (2018 £Nil). |
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Directors' and Secretary's remuneration - recharged from Mechanics Centre Museum of Labour and Trades' Union History Trust to the Centre amounts to £Nil (2018 £Nil). |
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| 8 |
Ultimate controlling party |
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There is no ultimate controlling party. |
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| 9 |
Pension Fund |
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The company is a member of the Greater Manchester Pension Fund. One employee is a contributing member. |
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Hymans Robertson LLP carried out an actuarial valuation at 31/03/2016. The report shows overall funding level of 93% compared to 91% at 31/03/2013. |
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Key assumptions are: |
| Nominal % |
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Real vs. CPI % |
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Investment returns |
4.2% |
|
2.0% |
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Price inflation |
3.2% |
|
-1.0% |
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Salary increases |
2.9% |
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-0.25% |
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Previous employer contribution rates were: |
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2014/15 |
18.1% |
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2015/16 |
19.9% |
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2016/17 |
21.6% |
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Future minimum contribution rates are: |
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2017/18 Current |
21.6% |
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2018/19 |
23.0% |
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2019/20 |
24.4% |
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These are intended to maintain the solvency of the fund. |
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We have no further details since 31/03/2016, other than paying the above contributions. |
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| 10 |
Other information |
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Mechanics Centre Limited is a private company limited by shares and incorporated in England. Its registered office is: 103 Princess Street, MANCHESTER M1 6DD |
