M & M Pallets Limited - Period Ending 2019-03-31
M & M Pallets Limited - Period Ending 2019-03-31
Registration number:
M & M Pallets Limited
for the Year Ended 31 March 2019
Chartered Accountants
74/76 High Street
WINSFORD
Cheshire
CW7 2AP
M & M Pallets Limited
Company Information
Director |
M D Gilligan |
Company secretary |
M Gilligan |
Registered office |
|
Accountants |
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Page 1 |
M & M Pallets Limited
Director's Report for the Year Ended 31 March 2019
The director presents his report and the abridged financial statements for the year ended 31 March 2019.
Director of the company
The director who held office during the year was as follows:
Principal activity
The principal activity of the company is manufacturing and dealing in pallets, supply of second hand coaches and trailers and the provision of storage facilities.
Small companies provision statement
This report has 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.
Approved by the Board on
.........................................
M Gilligan
Company secretary
Page 2 |
Chartered Accountants' Report to the Director on the Preparation of the Unaudited Statutory Accounts of
M & M Pallets Limited
for the Year Ended 31 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 M & M Pallets Limited for the year ended 31 March 2019 as set out on pages 4 to 12 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 M & M Pallets 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 M & M Pallets Limited and state those matters that we have agreed to state to the Board of Directors of M & M Pallets 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 M & M Pallets Limited and its Board of Directors as a body for our work or for this report.
It is your duty to ensure that M & M Pallets 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 M & M Pallets Limited. You consider that M & M Pallets 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 M & M Pallets 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
WINSFORD
Cheshire
CW7 2AP
Page 3 |
M & M Pallets Limited
Abridged Profit and Loss Account for the Year Ended 31 March 2019
Note |
Total |
Total |
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Gross profit |
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Administrative expenses |
( |
( |
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Other interest receivable and similar income |
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|
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Profit before tax |
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|
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Taxation |
( |
( |
|
Profit for the financial year |
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The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
Page 4 |
M & M Pallets Limited
(Registration number: 05057028)
Abridged Balance Sheet as at 31 March 2019
Note |
2019 |
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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Investments |
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- |
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Cash at bank and in hand |
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|
|
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Prepayments and accrued income |
|
|
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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|
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Accruals and deferred income |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Profit and loss account |
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Total equity |
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For the financial year ending 31 March 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Director's responsibilities:
• |
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• |
The director acknowledges his 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.
All of the company’s members have consented to the preparation of an Abridged Profit and Loss Account and an Abridged Balance Sheet in accordance with Section 444(2A) of the Companies Act 2006.
Page 5 |
M & M Pallets Limited
(Registration number: 05057028)
Abridged Balance Sheet as at 31 March 2019
Approved and authorised by the
......................................... |
Page 6 |
M & M Pallets Limited
Statement of Changes in Equity for the Year Ended 31 March 2019
Share capital |
Profit and loss account |
Total |
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At 1 April 2018 |
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|
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Profit for the year |
- |
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Total comprehensive income |
- |
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Dividends |
- |
( |
( |
At 31 March 2019 |
|
|
|
Share capital |
Profit and loss account |
Total |
|
At 1 April 2017 |
|
|
|
Profit for the year |
- |
|
|
Total comprehensive income |
- |
|
|
At 31 March 2018 |
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|
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Page 7 |
M & M Pallets Limited
Notes to the Abridged Financial Statements for the Year Ended 31 March 2019
General information |
The company is a private company limited by share capital incorporated in England.
The address of its registered office is:
These financial statements were authorised for issue by the
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 abridged financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These abridged 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 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.
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.
Page 8 |
M & M Pallets Limited
Notes to the Abridged Financial Statements for the Year Ended 31 March 2019
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 improvements |
10% on cost |
Plant and machinery |
15% on reducing balance |
Motor Vehicles |
25% on 4reducing balance |
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.
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.
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.
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.
Page 9 |
M & M Pallets Limited
Notes to the Abridged Financial Statements for the Year Ended 31 March 2019
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.
Share based payments
The company operates an equity-settled, share-based compensation plan, under which the entity receives services from employees as consideration for equity instruments (options) of the entity. The fair value of the employee services received is measured by reference to the estimated fair value at the grant date of equity instruments granted and is recognised as an expense over the vesting period. The estimated fair value of the option granted is calculated using the Black Scholes option pricing model. The total amount expensed is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied.
The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.
Staff numbers |
The average number of persons employed by the company (including the director) during the year, was
Profit before tax |
Arrived at after charging/(crediting)
2019 |
2018 |
|
Depreciation expense |
|
|
Page 10 |
M & M Pallets Limited
Notes to the Abridged Financial Statements for the Year Ended 31 March 2019
Tangible assets |
Total |
|
Cost or valuation |
|
At 1 April 2018 |
|
Additions |
|
Disposals |
( |
At 31 March 2019 |
|
Depreciation |
|
At 1 April 2018 |
|
Charge for the year |
|
Eliminated on disposal |
( |
At 31 March 2019 |
|
Carrying amount |
|
At 31 March 2019 |
|
At 31 March 2018 |
|
Included within the net book value of land and buildings above is £1,087 (2018 - £1,630) in respect of long leasehold land and buildings.
Stocks |
2019 |
2018 |
|
Other inventories |
|
|
Current asset investments |
2019 |
2018 |
|
Other investments |
|
- |
Page 11 |
M & M Pallets Limited
Notes to the Abridged Financial Statements for the Year Ended 31 March 2019
Dividends |
2019 |
2018 |
|
£ |
£ |
|
Final dividend of £ |
19,000 |
- |
Interim dividend of £ |
25,000 |
- |
44,000 |
- |
Page 12 |
M & M Pallets Limited
Detailed Profit and Loss Account for the Year Ended 31 March 2019
2019 |
2018 |
|
Turnover (analysed below) |
554,389 |
424,727 |
Cost of sales (analysed below) |
(157,539) |
(158,214) |
Gross profit |
396,850 |
266,513 |
Gross profit (%) |
71.58% |
62.75% |
Administrative expenses |
||
Employment costs (analysed below) |
(187,290) |
(127,685) |
Establishment costs (analysed below) |
(60,555) |
(51,211) |
General administrative expenses (analysed below) |
(39,833) |
(27,786) |
Finance charges (analysed below) |
(1,832) |
(899) |
Depreciation costs (analysed below) |
(35,330) |
(24,008) |
Other expenses (analysed below) |
6,557 |
793 |
(318,283) |
(230,796) |
|
Other operating income (analysed below) |
169,279 |
169,495 |
Operating profit |
247,846 |
205,212 |
Other interest receivable and similar income (analysed below) |
4,822 |
1,337 |
Profit before tax |
252,668 |
206,549 |
Page 13 |
M & M Pallets Limited
Detailed Profit and Loss Account for the Year Ended 31 March 2019
2019 |
2018 |
Turnover |
||
Sale of pallets |
552,376 |
424,415 |
Diesel recharge |
2,013 |
312 |
554,389 |
424,727 |
Cost of sales |
||
Opening stock |
16,200 |
14,750 |
Purchases |
154,589 |
159,664 |
Closing stock |
(13,250) |
(16,200) |
157,539 |
158,214 |
Employment costs |
||
Wages and salaries |
(101,247) |
(116,431) |
Staff NIC (Employers) |
(3,268) |
(3,151) |
Directors remuneration |
(16,600) |
(7,800) |
Staff pensions (Defined contribution) |
(60,637) |
- |
Directors pensions (Defined contribution) |
(4,000) |
- |
Staff training |
(1,538) |
- |
Staff pension |
- |
(303) |
(187,290) |
(127,685) |
Establishment costs |
||
Rent |
(20,000) |
(20,000) |
Rates |
(17,427) |
(16,894) |
Light, heat and power |
(3,045) |
(1,664) |
Insurance |
(11,737) |
(7,470) |
Repairs and maintenance |
(8,346) |
(5,183) |
(60,555) |
(51,211) |
General administrative expenses |
||
Telephone and fax |
(1,195) |
(778) |
Computer software and maintenance costs |
(187) |
(1,091) |
Printing, postage and stationery |
(460) |
(415) |
Charitable donations |
(75) |
- |
Sundry expenses |
(452) |
(217) |
Motor expenses |
(26,882) |
(23,120) |
Advertising |
(944) |
(442) |
Accountancy fees |
(1,688) |
(1,723) |
Consultancy fees |
(7,950) |
- |
(39,833) |
(27,786) |
Finance charges |
||
Bank charges |
(1,832) |
(899) |
Page 14 |
M & M Pallets Limited
Detailed Profit and Loss Account for the Year Ended 31 March 2019
Depreciation costs |
||
Depreciation |
(35,330) |
(24,008) |
Other expenses |
||
(Profit)/loss on disposal of tangible fixed assets |
6,557 |
793 |
Other operating income |
||
Storage |
169,279 |
169,495 |
Other interest receivable and similar income |
||
Bank interest receivable |
4,822 |
1,337 |
Page 15 |