Mainstream Logistic Services Limited - Limited company accounts 18.2

REGISTERED NUMBER: 04292302 (England and Wales)

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2019

FOR

MAINSTREAM LOGISTIC SERVICES LIMITED

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

4

Profit and Loss Account

6

Balance Sheet

7

Notes to the Financial Statements

9

DIRECTORS:

Mr M P Smith BA (Hons) FCA

Ms V A Coombs ACA FCCA

Mr M G Smith BA (Hons)

Mr G M Knowles

REGISTERED OFFICE:

Mainstream House

Bonham Drive

Sittingbourne

Kent

ME10 3RY

REGISTERED NUMBER:

04292302 (England and Wales)

AUDITORS:

Povey Little Chartered Accountants

and Statutory Auditors

12 Hatherley Road,

Sidcup

Kent

DA14 4DT

The directors present their report with the financial statements of the company for the year ended 31 March 2019.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the provision of business management services

including the supply of serviced premises and administrative functions.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2018 to the date of this report.

Mr M P Smith BA (Hons) FCA

Ms V A Coombs ACA FCCA

Mr M G Smith BA (Hons)

Mr G M Knowles

DIRECTORS AND OFFICERS LIABILITY INSURANCE

During the year the company had a qualifying third party indemnity provision in force for the benefit of directors and officers of

the company.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with

applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have

elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice

(United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial

statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or

loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's

transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure

that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the

company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006)

of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a

director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors

are aware of that information.

AUDITORS

The auditors, Povey Little Chartered Accountants, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small

companies.

ON BEHALF OF THE BOARD:

Ms V A Coombs ACA FCCA - Director

24 December 2019

Opinion

We have audited the financial statements of Mainstream Logistic Services Limited (the 'company') for the year ended

31 March 2019 which comprise the Profit and Loss Account, Balance Sheet and Notes to the Financial Statements, including a

summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is

applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial

Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2019 and of its loss for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our

responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial

statements section of our report. We are independent of the company in accordance with the ethical requirements that are

relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other

ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient

and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you

where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Report of the

Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly

stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,

consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the

audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material

misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material

misstatement of the other information. If, based on the work we have performed, we conclude that there is a material

misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we

have not identified material misstatements in the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in

our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit; or

-	the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors are responsible for the

preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as

the directors determine necessary to enable the preparation of financial statements that are free from material misstatement,

whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going

concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the

directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material

misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable

assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always

detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,

individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the

basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting

Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act

2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to

state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or

assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this

report, or for the opinions we have formed.

Alan Povey (Senior Statutory Auditor)

for and on behalf of Povey Little Chartered Accountants

and Statutory Auditors

12 Hatherley Road,

Sidcup

Kent

DA14 4DT

24 December 2019

TURNOVER

348,000

336,000

Cost of sales

14,088

8,008

GROSS PROFIT

333,912

327,992

Administrative expenses

346,028

349,278

OPERATING LOSS and

LOSS BEFORE TAXATION

(12,116

)

(21,286

)

Tax on loss

5

-

-

LOSS FOR THE FINANCIAL YEAR

(12,116

)

(21,286

)

FIXED ASSETS

Tangible assets

7

128,420

140,441

CURRENT ASSETS

Debtors

8

33,272

34,468

Cash at bank

1

6,212

33,273

40,680

CREDITORS

Amounts falling due within one year

9

152,275

79,587

NET CURRENT LIABILITIES

(119,002

)

(38,907

)

TOTAL ASSETS LESS CURRENT LIABILITIES

9,418

101,534

CAPITAL AND RESERVES

Called up share capital

10

40

40

Retained earnings

11

9,378

101,494

SHAREHOLDERS' FUNDS

9,418

101,534

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors on 24 December 2019 and were signed on its behalf by:

Ms V A Coombs ACA FCCA - Director

1.	STATUTORY INFORMATION

Mainstream Logistic Services 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

Turnover

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

added tax and other sales taxes.

Revenue for provision of services is recognised when it is probable that an economic benefit will flow to the entity and

that the revenue and costs can be reliably measured. For continuing services, revenue is recognised when the stage of

completion can be reliably measured using a percentage of completion method.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Long leasehold

-

10% on cost

Fixtures and fittings

-

10% on cost

Computer equipment

-

25% on reducing balance

Hire purchase and leasing commitments

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

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 1 (2018 - 1 ) .

4.	OPERATING LOSS

The operating loss is stated after charging:

2019

2018

£

£

Depreciation - owned assets

19,757

18,106

Auditors' remuneration

1,000

1,000

5.

TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose for the year ended 31 March 2019 nor for the year ended 31 March 2018.

6.

DIVIDENDS

2019

2018

£

£

Ordinary shares of £1 each

Interim

80,000

-

7.	TANGIBLE FIXED ASSETS

Fixtures

Long

and

Computer

leasehold

fittings

equipment

Totals

£

£

£

£

COST

At 1 April 2018

13,058

128,849

25,676

167,583

Additions

-

5,176

2,560

7,736

At 31 March 2019

13,058

134,025

28,236

175,319

DEPRECIATION

At 1 April 2018

2,503

18,856

5,783

27,142

Charge for year

1,306

13,246

5,205

19,757

At 31 March 2019

3,809

32,102

10,988

46,899

NET BOOK VALUE

At 31 March 2019

9,249

101,923

17,248

128,420

At 31 March 2018

10,555

109,993

19,893

140,441

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

VAT

23,261

21,587

Prepayments

10,011

12,881

33,272

34,468

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Bank loans and overdrafts

20,049

-

Trade creditors

26,316

34,314

Amounts owed to group undertakings

103,287

40,378

Other creditors

2,623

4,895

152,275

79,587

Other creditors consists of accrued expenses of £2,623 (2018: £4,895).

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2019

2018

value:

£

£

20

Ordinary

£1

20

20

15

Deferred A

£1

15

15

5

Deferred B

£1

5

5

40

40

The deferred shares are non-voting and carry no time related right for conversion into equity shares although that was

and still is the intention. Accordingly they are shown as part of the company's equity as opposed to debt.

11.

RESERVES

Retained

earnings

£

At 1 April 2018

101,494

Deficit for the year

(12,116

)

Dividends

(80,000

)

At 31 March 2019

9,378

12.	CONTINGENT LIABILITIES

The company is group registered for VAT and as such it has joint and several liability for any VAT debt owed by the

VAT group. The other members of the group are Mainstream Training Limited, Mainstream Staff Supplies Limited and

Mainstream Fleet Services Limited, all companies are under common control.

13.	ULTIMATE PARENT COMPANY

The immediate parent company is The Mainstream Group Limited (a company registered in the UK which prepares

group accounts) which is in turn a 100% subsidiary of the ultimate parent undertaking Ascentrix Limited (a company

registered in the UK which does not prepare group accounts).

14.	RELATED PARTY DISCLOSURES

Mark Smith, a director is also the majority shareholder and a director of Logika Limited trading as Mackenzies the

reporting accountants. During the period under review the company paid £5,250 (2018: £5,250) net of VAT to Logika

Limited for accountancy services.

The directors consider that all of the above transactions were at open market value.

15.	ULTIMATE CONTROLLING PARTY

There is no ultimate controlling party, no individual shareholders holds more than 25% of the issued share capital of the

ultimate parent company.