MCL Distribution Limited Filleted accounts for Companies House (small and micro)

MCL DISTRIBUTION LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 01213216

MCL DISTRIBUTION LIMITED

FILLETED FINANCIAL STATEMENTS

31 March 2020

MCL DISTRIBUTION LIMITED

FINANCIAL STATEMENTS

Year ended 31 March 2020

CONTENTS	PAGE

Balance sheet	1

Notes to the financial statements	2

MCL DISTRIBUTION LIMITED

BALANCE SHEET

31 March 2020

	2020	2019
Note	£	£

FIXED ASSETS

Tangible assets	5	194,313	360,484

CURRENT ASSETS

Stocks		–	63,000
Debtors	6	842,283	753,279
Cash at bank and in hand		2,583	96,672
		---------	---------
		844,866	912,951

CREDITORS: amounts falling due within one year	7	( 463,359)	( 819,088)
		---------	---------
NET CURRENT ASSETS		381,507	93,863
		---------	---------
TOTAL ASSETS LESS CURRENT LIABILITIES		575,820	454,347

CREDITORS: amounts falling due after more than one year	8	( 26,479)	( 82,952)
		---------	---------
NET ASSETS		549,341	371,395
		---------	---------

CAPITAL AND RESERVES

Called up share capital	5,000	5,000
Profit and loss account	544,341	366,395
	---------	---------
SHAREHOLDERS FUNDS	549,341	371,395
	---------	---------

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 profit and loss account has not been delivered.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

These financial statements were approved by the board of directors and authorised for issue on 22 February 2021 , and are signed on behalf of the board by:

Mr J Howells

Director

Company registration number: 01213216

MCL DISTRIBUTION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2020

1. GENERAL INFORMATION

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Lake Road, Leeway Industrial Estate, Newport, South Wales, NP19 4WN.

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 and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Invoice discounting facility

The company has in place an invoice discount facility based on the value of trade receivables. Under this arrangement the group has retained both the credit and late payment risk associated with the receivables. As the company has retained substantially all the risk and rewards of ownership of the receivables, it continues to recognise the receivables in the balance sheet with advances from the facility provider treated as a separate liability.

The expenses associated with this facility are included within interest payable within the profit & loss account.

Turnover

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 and machinery	-	10% to 35% Straight Line
Vehicles	-	10% to 25% Straight Line

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.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the balance sheet as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Financial instruments

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities. Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

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. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. EMPLOYEE NUMBERS

The average number of persons employed by the company during the year amounted to 1 (2019: 1 ).

5. TANGIBLE ASSETS

	Plant and machinery	Motor vehicles	Total
	£	£	£
Cost
At 1 April 2019	1,129,192	64,302	1,193,494
Additions	–	17,514	17,514
Disposals	( 200,000)	( 1,124)	( 201,124)
	------------	--------	------------
At 31 March 2020	929,192	80,692	1,009,884
	------------	--------	------------
Depreciation
At 1 April 2019	783,859	49,151	833,010
Charge for the year	171,006	11,901	182,907
Disposals	( 200,000)	( 346)	( 200,346)
	------------	--------	------------
At 31 March 2020	754,865	60,706	815,571
	------------	--------	------------
Carrying amount
At 31 March 2020	174,327	19,986	194,313
	------------	--------	------------
At 31 March 2019	345,333	15,151	360,484
	------------	--------	------------

Finance leases and hire purchase contracts

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:

	Plant and machinery	Motor vehicles	Total
	£	£	£
At 31 March 2020	57,549	17,154	74,703
	--------	--------	--------
At 31 March 2019	183,560	–	183,560
	---------	--------	---------

6. DEBTORS

	2020	2019
	£	£
Trade debtors	571,532	659,777
Amounts owed by group undertakings and undertakings in which the company has a participating interest	188,645	–
Other debtors	82,106	93,502
	---------	---------
	842,283	753,279
	---------	---------

7. CREDITORS: amounts falling due within one year

	2020	2019
	£	£
Trade creditors	158,155	194,753
Amounts owed to group undertakings and undertakings in which the company has a participating interest	–	30,918
Corporation tax	6,727	51,003
Social security and other taxes	82,001	100,684
Other creditors	216,476	441,730
	---------	---------
	463,359	819,088
	---------	---------

Included within other creditors is an amount of £123,760 (2019 - £165,923) secured on debtors.

Also included within other creditors is an amount of £67,688 (2019 - £184,251) in respect of hire purchase agreements that are secured on the assets to which they relate.

8. CREDITORS: amounts falling due after more than one year

	2020	2019
	£	£
Other creditors	26,479	82,952
	--------	--------

Included within other creditors is an amount of £26,479 (2019 - £82,952) in respect of hire purchase agreements that are secured on the assets to which they relate.

9. SUMMARY AUDIT OPINION

The auditor's report for the year dated 24 February 2021 was unqualified .

The senior statutory auditor was Simon Tee , for and on behalf of Kilsby & Williams LLP .

10. RELATED PARTY TRANSACTIONS

In accordance with the exemption afforded by Section 33 of FRS 102, there is no disclosure in the accounts of transactions with entities that are wholly owned subsidiaries of the Monmouthshire Xpress Group Limited, the ultimate parent undertaking.

11. CONTROLLING PARTY

In the opinion of the director the ultimate parent company is Monmouthshire Xpress Group Limited, a company registered in England and Wales. The parent undertaking of the largest and smallest group, which includes the company and for which group accounts are prepared, is Monmouthshire Xpress Group Limited. Copies of the group accounts can be obtained from Companies House, Crown Way, Cardiff, CF4 3UZ.