McNally and Thompson (UK Contracts) Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 03485540 (England and Wales)

Unaudited Financial Statements

for the Year Ended 31 December 2019

for

McNally and Thompson

(UK Contracts) Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

F G Hood

D R Wealleans

SECRETARY:

F G Hood

REGISTERED OFFICE:

Unit 1

North Hylton Enterprise Park

North Hylton Road

Sunderland

Tyne and Wear

SR5 3AD

REGISTERED NUMBER:

03485540 (England and Wales)

ACCOUNTANTS:

Clive Owen LLP

Chartered Accountants

Kepier House

Belmont Business Park

Durham

DH1 1TW

FIXED ASSETS

Tangible assets

4

107,965

53,050

CURRENT ASSETS

Stocks

5,500

5,500

Debtors

5

2,021,966

1,292,831

Cash at bank and in hand

296,313

748,825

2,323,779

2,047,156

CREDITORS

Amounts falling due within one year

6

1,447,436

1,099,083

NET CURRENT ASSETS

876,343

948,073

TOTAL ASSETS LESS CURRENT LIABILITIES

984,308

1,001,123

CREDITORS

Amounts falling due after more than one year

7

(69,653

)

(26,800

)

PROVISIONS FOR LIABILITIES

10

(8,143

)

(4,585

)

NET ASSETS

906,512

969,738

CAPITAL AND RESERVES

Called up share capital

11

600

600

Capital redemption reserve

400

400

Retained earnings

905,512

968,738

SHAREHOLDERS' FUNDS

906,512

969,738

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2019 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 22 April 2020 and were signed on its behalf by:

F G Hood - Director

1.	STATUTORY INFORMATION

McNally and Thompson (UK Contracts) 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.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities"

of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of

Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost

convention.

There were no material departures from that standard.

The principal accounting policies adopted in the preparation of the financial statements are set out below and

have remained unchanged from the previous year, and also have been consistently applied within the same

accounts.

Going concern

The directors assess whether the use of going concern is appropriate i.e. whether there are any material

uncertainties related to events or conditions that may cast significant doubt on the ability of the company to

continue as a going concern. The directors make this assessment in respect of a period of at least one year from

the date the financial statements are approved.

At the date of approval, the country and indeed the rest of the world is in the midst of dealing with the Covid-19

pandemic. This has impacted unfavourably on the levels of work possible. The company has taken steps to deal

with the financial impact of this, including the preparation of revised forecasts. Whilst there is uncertainty around

the length of time the Covid-19 pandemic will last and the full impact on the global economy, the directors

believe that it is appropriate to continue to adopt the going concern basis of accounting in preparing the financial

statements due to the levels of reserves and potential financial support available.

Turnover

Turnover represents the total amount receivable by the company for services provided, excluding value added

tax and trade discounts.

Income is recognised as work is carried out with monthly invoices raised for the proportion of contracted work

completed by this stage.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Improvements to property

-

10% on cost

Plant and machinery

-

33% on cost

Fixtures and fittings

-

10% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

33.33% on cost

Tangible fixed assets are included at cost less accumulated depreciation and impairments.

Stocks and work in progress

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance

for obsolete and slow moving items. Cost includes all direct expenditure and an appropriate proportion of fixed

and variable overheads.

Profit on contracts is taken as the work is carried out if the final outcome can be assessed with reasonable

accuracy. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at

the period end, by recording turnover and related costs as contract activity progresses. Turnover is calculated as

that proportion of total contract value which costs incurred to date bear to total expected costs for that contract.

Revenues derived from variations on contracts are recognised only when they have been accepted by the

customer.

Financial instruments

Basic financial instruments are recognised at amortised cost with changes recognised in profit and loss.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account,

except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that

have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the

timing difference.

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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held

under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases

are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element

of the future payments is treated as a liability.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

Government grants

Revenue based grants have been credited to the profit and loss account in the period to which they relate. Capital

based grants are accounted for using the accruals model and have been transferred to a deferred credit and

released to the profit and loss account over the useful life of the asset, as disclosed above.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 53 (2018 - 57 ) .

4.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

£

£

£

COST

At 1 January 2019

3,483

533

6,785

Additions

-

-

-

Disposals

-

-

-

At 31 December 2019

3,483

533

6,785

DEPRECIATION

At 1 January 2019

1,799

533

4,875

Charge for year

348

-

485

Eliminated on disposal

-

-

-

At 31 December 2019

2,147

533

5,360

NET BOOK VALUE

At 31 December 2019

1,336

-

1,425

At 31 December 2018

1,684

-

1,910

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 January 2019

118,432

22,213

151,446

Additions

99,304

-

99,304

Disposals

(36,648

)

-

(36,648

)

At 31 December 2019

181,088

22,213

214,102

DEPRECIATION

At 1 January 2019

69,555

21,634

98,396

Charge for year

32,272

487

33,592

Eliminated on disposal

(25,851

)

-

(25,851

)

At 31 December 2019

75,976

22,121

106,137

NET BOOK VALUE

At 31 December 2019

105,112

92

107,965

At 31 December 2018

48,877

579

53,050

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

vehicles

£

COST

At 1 January 2019

68,760

Additions

99,304

Disposals

(24,460

)

At 31 December 2019

143,604

DEPRECIATION

At 1 January 2019

26,583

Charge for year

29,818

Eliminated on disposal

(16,307

)

At 31 December 2019

40,094

NET BOOK VALUE

At 31 December 2019

103,510

At 31 December 2018

42,177

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

1,994,634

1,262,024

Other debtors

17,532

11,439

Prepayments and accrued income

9,800

19,368

2,021,966

1,292,831

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Hire purchase contracts (see note 8)

26,951

13,668

Trade creditors

1,312,798

983,029

Taxation and social security

81,306

82,356

Other creditors

751

-

Directors' current accounts

19,820

11,144

Accruals and deferred income

5,810

8,886

1,447,436

1,099,083

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2019

2018

£

£

Hire purchase contracts (see note 8)

69,653

26,800

8.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2019

2018

£

£

Net obligations repayable:

Within one year

26,951

13,668

Between one and five years

69,653

26,800

96,604

40,468

Non-cancellable operating

leases

2019

2018

£

£

Within one year

31,389

35,283

Between one and five years

60,453

74,026

91,842

109,309

9.	SECURED DEBTS

The following secured debts are included within creditors:

2019

2018

£

£

Hire purchase contracts

96,604

40,468

Hire purchase contracts are secured on the assets to which they relate.

10.	PROVISIONS FOR LIABILITIES

2019

2018

£

£

Deferred tax

8,143

4,585

Deferred

tax

£

Balance at 1 January 2019

4,585

Accelerated capital allowances

3,558

Balance at 31 December 2019

8,143

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2019

2018

value:

£

£

600

Ordinary

£1

600

600

12.	RELATED PARTY DISCLOSURES

There were no related party transactions other than those concluded under normal market conditions, except for

those shown below.

2019

2018

£

£

Amounts due to directors

19,820

11,144

No interest has been charged.