ACCOUNTS - Final Accounts preparation

FUTURA COMMERCIAL SERVICES LIMITED - Company Information

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Registered number: 09720816

WMAT TRADING LIMITED

DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

WMAT TRADING LIMITED

REGISTERED NUMBER:09720816

STATEMENT OF FINANCIAL POSITION

AS AT 31 AUGUST 2020

		2020		2019
Note		£		£


Current assets
Debtors: amounts falling due within one year	4	29,046		30,224
Cash at bank and in hand		278,481		266,971
		307,527		297,195
Creditors: amounts falling due within one year	5	(415,089)		(350,209)
Net current liabilities			(107,562)		(53,014)
Total assets less current liabilities			(107,562)		(53,014)

Net liabilities			(107,562)		(53,014)

Capital and reserves
Called up share capital	6	10	10
Profit and loss account		(107,572)	(53,024)
		(107,562)	(53,014)

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

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

The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

T I Howes

Director

Date: 14 December 2020

The notes on pages 2 to 5 form part of these financial statements.

Page 1

WMAT TRADING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

1.	General information

WMAT Trading Limited is a company limited by shares, incorporated in Englnd and Wales. The registered office is Wellsway School, Chandag Road, Keynsham, Bristol, BS31 1PH.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The following principal accounting policies have been applied:

2.2

Financial reporting standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

∙the requirements of Section 7 Statement of Cash Flows;

∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);

∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;

∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Wellsway Multi Academy Trust as at 31 August 2020 and these financial statements may be obtained from the registered office.

2.3

Going concern

The Company has made a loss of £54,550 (2019: profit of £7,238) and has a net deficit in shareholder's funds of £107,562 (2019: £53,014).
The Company has been adversely affected by Covid 19 in the current year and operations were suspended during the lockdown period but have since reopened in accordance with social distancing guidelines and returned to profitability. The directors took advantage of available government support, including the furlough scheme to ensure the survivability of the business in the longer term.
For the first six months of the year the company was trading profitably and was on course to make significant inroads into the net deficit in shareholders funds. This, following the loss incurred in 2018 and small profit generated in 2019, gives the Directors confidence that the company is firmly on an upward trajectory and will, under normal trading conditions, generate sufficient profits to return the company to a net surplus position in the coming years.
The Company relies on the financial support of Wellsway Multi Academy Trust, its parent company which the directors have confirmed will continue for a period of at least 12 months from the date of approval of these financial statements. As such the directors consider that it is appropriate to prepare these financial statements on a going concern basis.

Page 2

WMAT TRADING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

2.Accounting policies (continued)

2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.6

Pensions

DEFINED CONTRIBUTION PENSION PLAN

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

2.7

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.8

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.9

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 3

WMAT TRADING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

2.Accounting policies (continued)

2.10

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Employees

The average monthly number of employees, including directors, during the year was 14 (2019: 13).

Debtors

					2020	2019
					£	£


Trade debtors	15,124	-
Other debtors	4,045	1,324
Prepayments and accrued income	9,877	28,900
	29,046	30,224

5.	Creditors: AMOUNTS FALLING DUE WITHIN ONE YEAR
		2020	2019
		£	£

Trade creditors	3,236	9,273
Amounts owed to group undertakings	394,615	327,599
Other taxation and social security	6,570	6,396
Other creditors	9,042	3,890
Accruals and deferred income	1,626	3,051
	415,089	350,209

6.	Share capital
		2020	2019
		£	£

ALLOTTED, CALLED UP AND FULLY PAID

10 (2019: 10) Ordinary Shares shares of £1.00 each	10	10

Page 4

WMAT TRADING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

7.	Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. Contributions totalling £Nil (2019: £Nil) were payable to the fund at the reporting date and are included in creditors.

8.	Related party transactions
	The company has taken advantage of the exemption under FRS102 section 33 from disclosing transactions with fellow group companies. At the year end Wellsway Multi Academy Trust, the ultimate parent company, was owed £394,615 (2019: £327,599).

9.	Controlling party

The immediate and ultimate parent company is Wellsway Multi Academy Trust, a company limited by guarantee and incorporated in England and Wales.
There is no ultimate controlling party.

10.	Auditors' information

The auditors' report on the financial statements for the year ended 31 August 2020 was unqualified.

The audit report was signed on 23 December 2020 by Joseph Scaife FCA (Senior statutory auditor) on behalf of Bishop Fleming LLP.

Page 5