M.C.A. Enterprises Ltd Filleted accounts for Companies House (small and micro)

M.C.A. ENTERPRISES LTD. - Company Information

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COMPANY REGISTRATION NUMBER: 02726489

M.C.A. Enterprises Ltd

Filleted Unaudited Financial Statements

31 July 2020

M.C.A. Enterprises Ltd

Statement of Financial Position

31 July 2020

	2020		2019
Note	£	£	£

Fixed assets

Tangible assets	5		26,709	5,183

Current assets

Stocks		159,653	160,972
Debtors	6	1,209,044	932,685
Cash at bank and in hand		131,020	103,490
		------------	------------
		1,499,717	1,197,147

Creditors: amounts falling due within one year	7	926,825		788,079
		------------		------------
Net current assets			572,892	409,068
			---------	---------
Total assets less current liabilities			599,601	414,251

Provisions

Taxation including deferred tax	1,745	–
	---------	---------
Net assets	597,856	414,251
	---------	---------

Capital and reserves

Called up share capital	25,000	25,000
Profit and loss account	572,856	389,251
	---------	---------
Shareholders funds	597,856	414,251
	---------	---------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.

For the year ending 31 July 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

M.C.A. Enterprises Ltd

Statement of Financial Position (continued)

31 July 2020

These financial statements were approved by the board of directors and authorised for issue on 7 October 2020 , and are signed on behalf of the board by:

Mr C Betts	Mr P Harris
Director	Director

Company registration number: 02726489

M.C.A. Enterprises Ltd

Notes to the Financial Statements

Year ended 31 July 2020

1. General information

The company is a private company limited by shares, registered in England & Wales. The address of the registered office is Lyndhurst, 1 Cranmer Street, Long Eaton, Nottingham, NG10 1NJ.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities measured at fair value through profit or loss. The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

During the year the Coronavirus (Covid-19) pandemic spread across the world. The company was able to benefit from a countrywide impetus to stockpile groceries, particularly long-life products. The pandemic remains throughout the world at present and this offers both opportunities and risks to the company. There are opportunities to widen its product base, customer base and sell greater quantities. There are risks involved with possible enforced close-downs of suppliers, customers or even the company that could restrict the company's ability to trade for periods of time. The company believes that, at present the opportunities outweigh the risks and is working to maximise those opportunities. The UK is also set to leave the internal market of the EU at the end of 2020 because of Brexit. The company has in place all procedures it feels necessary to allow it to continue to trade with businesses situated in the EU, and continues to monitor the situation with regard to Government guidelines, staff training and trade agreements. The progression of Brexit by the Government has been restricted by the pandemic. The directors of the company believe that they have organised the company to be in the best possible position despite the economic uncertainties caused by the ongoing pandemic and Brexit and are satisfied that the company remains a going concern.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised 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 that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Plant & machinery	-	20% reducing balance
Fixtures & fittings	-	20% reducing balance
Motor vehicles	-	25% reducing balance
Computer equipment	-	33% straight line

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship (see hedge accounting policy).

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 13 (2019: 11 ).

5. Tangible assets

	Plant and machinery	Fixtures and fittings	Motor vehicles	Equipment	Total
	£	£	£	£	£
Cost
At 1 August 2019	45,120	56,345	–	36,925	138,390
Additions	4,683	–	20,000	3,921	28,604
	--------	--------	--------	--------	---------
At 31 July 2020	49,803	56,345	20,000	40,846	166,994
	--------	--------	--------	--------	---------
Depreciation
At 1 August 2019	44,233	52,049	–	36,925	133,207
Charge for the year	734	913	5,000	431	7,078
	--------	--------	--------	--------	---------
At 31 July 2020	44,967	52,962	5,000	37,356	140,285
	--------	--------	--------	--------	---------
Carrying amount
At 31 July 2020	4,836	3,383	15,000	3,490	26,709
	--------	--------	--------	--------	---------
At 31 July 2019	887	4,296	–	–	5,183
	--------	--------	--------	--------	---------

6. Debtors

	2020	2019
	£	£
Trade debtors	734,928	458,556
Amounts owed by group undertakings and undertakings in which the company has a participating interest	380,339	332,872
Other debtors	93,777	141,257
	------------	---------
	1,209,044	932,685
	------------	---------

7. Creditors: amounts falling due within one year

	2020	2019
	£	£
Trade creditors	729,362	713,235
Corporation tax	27,309	–
Social security and other taxes	4,519	2,656
Other creditors	165,635	72,188
	---------	---------
	926,825	788,079
	---------	---------

The bank holds a security by way of a fixed charge over all present and future purchased debts, excluding those deemed non-notifiable non-vesting debts, and a floating charge over all present and future assets and undertakings not already included in the fixed charge.

8. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2020	2019
	£	£
Not later than 1 year	25,586	67,827
Later than 1 year and not later than 5 years	17,215	14,903
	--------	--------
	42,801	82,730
	--------	--------

9. Directors' advances, credits and guarantees

During the year the directors entered into the following advances and credits with the company:

	2020
	Balance brought forward	Advances/ (credits) to the directors	Amounts repaid	Balance outstanding
	£	£	£	£
M Ato	–	–	–	–
Mr C Betts	23,362	63,450	( 74,930)	11,882
Mr P Harris	24,625	63,450	( 74,930)	13,145
	--------	---------	---------	--------
	47,987	126,900	( 149,860)	25,027
	--------	---------	---------	--------

	2019
	Balance brought forward	Advances/ (credits) to the directors	Amounts repaid	Balance outstanding
	£	£	£	£
M Ato	125,449	1,131	( 126,580)	–
Mr C Betts	–	23,362	–	23,362
Mr P Harris	–	24,625	–	24,625
	---------	--------	---------	--------
	125,449	49,118	( 126,580)	47,987
	---------	--------	---------	--------

The directors' loans are interest free and repayable on demand.

10. Controlling party

During the year the company became a wholly owned subsidiary of Harbett Holdings Limited, a company registered in England.