KMM Civil Engineering Ltd - Period Ending 2019-05-31
KMM Civil Engineering Ltd - Period Ending 2019-05-31
Registration number:
KMM Civil Engineering Ltd
for the Year Ended 31 May 2019
Chartered Accountants
31 Sackville Street
Manchester
M1 3LZ
KMM Civil Engineering Ltd
Contents
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Company Information |
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Directors' Report |
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Accountants' Report |
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Profit and Loss Account |
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Statement of Comprehensive Income |
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Balance Sheet |
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Statement of Changes in Equity |
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Notes to the Financial Statements |
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Detailed Profit and Loss Account |
KMM Civil Engineering Ltd
Company Information
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Directors |
Mr Kevin Murphy Mr Malachy Murphy |
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Registered office |
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Accountants |
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Page 1 |
KMM Civil Engineering Ltd
Directors' Report for the Year Ended 31 May 2019
The directors present their report and the financial statements for the year ended 31 May 2019.
Directors of the company
The directors who held office during the year were as follows:
Principal activity
The principal activity of the company is Construction
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
.........................................
Director
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Page 2 |
Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
KMM Civil Engineering Ltd
for the Year Ended 31 May 2019
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of KMM Civil Engineering Ltd for the year ended 31 May 2019 as set out on pages 4 to 13 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 KMM Civil Engineering Ltd, 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 KMM Civil Engineering Ltd and state those matters that we have agreed to state to the Board of Directors of KMM Civil Engineering Ltd, 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 KMM Civil Engineering Ltd and its Board of Directors as a body for our work or for this report.
It is your duty to ensure that KMM Civil Engineering Ltd has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and loss of KMM Civil Engineering Ltd. You consider that KMM Civil Engineering Ltd 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 KMM Civil Engineering Ltd. 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.
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Chartered Accountants
Manchester
M1 3LZ
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Page 3 |
KMM Civil Engineering Ltd
Profit and Loss Account for the Year Ended 31 May 2019
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Note |
2019 |
2018 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Operating (loss)/profit |
( |
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Other interest receivable and similar income |
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54 |
40 |
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(Loss)/profit before tax |
( |
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Taxation |
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( |
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(Loss)/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.
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Page 4 |
KMM Civil Engineering Ltd
Statement of Comprehensive Income for the Year Ended 31 May 2019
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2019 |
2018 |
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(Loss)/profit for the year |
( |
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Total comprehensive income for the year |
( |
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Page 5 |
KMM Civil Engineering Ltd
(Registration number: 09570436)
Balance Sheet as at 31 May 2019
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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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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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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 May 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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• |
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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.
Approved and authorised by the
.........................................
Director
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Page 6 |
KMM Civil Engineering Ltd
Statement of Changes in Equity for the Year Ended 31 May 2019
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Share capital |
Profit and loss account |
Total |
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At 1 June 2018 |
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Loss for the year |
- |
( |
( |
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Total comprehensive income |
- |
( |
( |
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Dividends |
- |
( |
( |
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At 31 May 2019 |
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Share capital |
Profit and loss account |
Total |
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At 1 June 2017 |
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Profit for the year |
- |
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Total comprehensive income |
- |
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Dividends |
- |
( |
( |
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At 31 May 2018 |
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Page 7 |
KMM Civil Engineering Ltd
Notes to the Financial Statements for the Year Ended 31 May 2019
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General information |
The company is a private company limited by share capital, incorporated in U.K..
The address of its registered office is:
The principal place of business is:
16 Scott Road
Droylsden
Manchester
M43 7UY
These financial statements were authorised for issue by the
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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 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 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.
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Page 8 |
KMM Civil Engineering Ltd
Notes to the Financial Statements for the Year Ended 31 May 2019
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.
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:
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Asset class |
Depreciation method and rate |
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20% per annum 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 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.
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Page 9 |
KMM Civil Engineering Ltd
Notes to the Financial Statements for the Year Ended 31 May 2019
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
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.
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Loss/profit before tax |
Arrived at after charging/(crediting)
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2019 |
2018 |
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Depreciation expense |
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Page 10 |
KMM Civil Engineering Ltd
Notes to the Financial Statements for the Year Ended 31 May 2019
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Tangible assets |
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Motor vehicles |
Total |
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Cost or valuation |
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At 1 June 2018 |
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At 31 May 2019 |
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Depreciation |
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At 1 June 2018 |
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Charge for the year |
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At 31 May 2019 |
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Carrying amount |
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At 31 May 2019 |
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At 31 May 2018 |
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Stocks |
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2019 |
2018 |
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Work in progress |
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Debtors |
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Note |
2019 |
2018 |
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Amounts owed by group undertakings and undertakings in which the company has a participating interest |
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Other debtors |
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- |
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Creditors |
Creditors: amounts falling due within one year
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Page 11 |
KMM Civil Engineering Ltd
Notes to the Financial Statements for the Year Ended 31 May 2019
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2019 |
2018 |
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Due within one year |
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Trade creditors |
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Taxation and social security |
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Accruals and deferred income |
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Other creditors |
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Share capital |
Allotted, called up and fully paid shares
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2019 |
2018 |
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No. |
£ |
No. |
£ |
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Ordinary of £1 each |
100 |
100 |
100 |
100 |
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Dividends |
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2019 |
2018 |
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£ |
£ |
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Interim dividend of £ |
68,600 |
70,000 |
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Related party transactions |
Directors' remuneration
The directors' remuneration for the year was as follows:
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2019 |
2018 |
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Remuneration |
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Summary of transactions with parent
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Page 12 |
KMM Civil Engineering Ltd
Notes to the Financial Statements for the Year Ended 31 May 2019
Summary of transactions with associates
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Parent and ultimate parent undertaking |
The company's immediate parent is
The ultimate parent is
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Page 13 |
KMM Civil Engineering Ltd
Detailed Profit and Loss Account for the Year Ended 31 May 2019
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2019 |
2018 |
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Turnover (analysed below) |
611,536 |
909,121 |
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Cost of sales (analysed below) |
(422,501) |
(592,529) |
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Gross profit |
189,035 |
316,592 |
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Gross profit (%) |
30.91% |
34.82% |
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Administrative expenses |
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Employment costs (analysed below) |
(54,119) |
(97,760) |
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Establishment costs (analysed below) |
(93,966) |
(70,522) |
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General administrative expenses (analysed below) |
(50,299) |
(77,696) |
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Finance charges (analysed below) |
(350) |
(273) |
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Depreciation costs (analysed below) |
(256) |
(320) |
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(198,990) |
(246,571) |
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Operating (loss)/profit |
(9,955) |
70,021 |
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Other interest receivable and similar income (analysed below) |
54 |
40 |
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(Loss)/profit before tax |
(9,901) |
70,061 |
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Page 14 |
KMM Civil Engineering Ltd
Detailed Profit and Loss Account for the Year Ended 31 May 2019
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2019 |
2018 |
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Turnover |
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Sale of goods, UK |
611,536 |
909,121 |
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Cost of sales |
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Opening stock and work in progress |
(146,722) |
(129,876) |
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Materials |
(52,338) |
(110,240) |
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Closing stock and work in progress |
62,391 |
146,722 |
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Labour |
(112,328) |
(286,554) |
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Plant repairs |
(753) |
(1,758) |
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Hire of plant and machinery |
(167,216) |
(203,617) |
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Plant fuel |
(5,535) |
(7,206) |
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(422,501) |
(592,529) |
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Employment costs |
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Wages and salaries (excluding directors) |
(13,427) |
(12,748) |
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Staff NIC (Employers) |
(2,731) |
(2,838) |
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Directors remuneration |
(34,696) |
(32,348) |
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Staff training and recruitment |
(3,265) |
(49,826) |
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(54,119) |
(97,760) |
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Establishment costs |
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Yard storage |
(2,450) |
(1,932) |
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Insurance |
(20,876) |
(33,285) |
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Site security |
(23,824) |
(25,480) |
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Repairs and maintenance |
- |
(315) |
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Waste disposal, haulage and carriage |
(46,816) |
(9,510) |
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(93,966) |
(70,522) |
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General administrative expenses |
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Telephone and fax |
(4,705) |
(5,161) |
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Computer software and maintenance costs |
(1,115) |
(26,358) |
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Printing, postage and stationery |
(137) |
(955) |
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Sundry expenses |
(2,405) |
(2,540) |
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Motor expenses |
(14,363) |
(17,357) |
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Travel and subsistence |
(6,476) |
(8,722) |
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Accountancy fees |
(6,596) |
(11,445) |
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Legal and professional fees |
(14,502) |
(5,158) |
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(50,299) |
(77,696) |
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Page 15 |
KMM Civil Engineering Ltd
Detailed Profit and Loss Account for the Year Ended 31 May 2019
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2019 |
2018 |
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Finance charges |
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Bank charges |
(350) |
(273) |
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Depreciation costs |
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Depreciation of motor vehicles (owned) |
(256) |
(320) |
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Other interest receivable and similar income |
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Bank interest receivable |
54 |
40 |
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Page 16 |