Solution MHE Limited - Filleted accounts


Registered number
04081750
Solution MHE Limited
Filleted Accounts
30 June 2020
Solution MHE Limited
Registered number: 04081750
Balance Sheet
as at 30 June 2020
Notes 2020 2019
£ £
Fixed assets
Tangible assets 4 323,609 290,924
Current assets
Stocks 93,983 66,868
Debtors 5 825,492 410,327
Cash at bank and in hand 105,730 35,630
1,025,205 512,825
Creditors: amounts falling due within one year 6 (944,385) (343,274)
Net current assets 80,820 169,551
Total assets less current liabilities 404,429 460,475
Creditors: amounts falling due after more than one year 7 (1,642) (18,792)
Provisions for liabilities (35,040) (27,957)
Net assets 367,747 413,726
Capital and reserves
Called up share capital 86 86
Capital redemption reserve 9 90 90
Profit and loss account 367,571 413,550
Shareholder's funds 367,747 413,726
The director is satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The member has not required the company to obtain an audit in accordance with section 476 of the Act.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
F Smith
Director
Approved by the board on 22 March 2021
Solution MHE Limited
Notes to the Accounts
for the year ended 30 June 2020
1 Accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
Intangible fixed assets
Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses.
Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Freehold buildings 2% straight line
Hire Fleet 15-100% straight line
Plant and machinery etc. 15-33% straight line
Motor vehicles 25% straight line
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
Leased assets
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
Pensions
Contributions to defined contribution plans are expensed in the period to which they relate.
2 Employees 2020 2019
Number Number
Average number of persons employed by the company 18 19
3 Intangible fixed assets £
Goodwill:
Cost
At 1 July 2019 4,750
At 30 June 2020 4,750
Amortisation
At 1 July 2019 4,750
At 30 June 2020 4,750
Net book value
At 30 June 2020 -
Goodwill is being written off in equal annual instalments over its estimated economic life of 5 years.
4 Tangible fixed assets
Land and buildings Plant and machinery etc Motor vehicles Total
£ £ £ £
Cost
At 1 July 2019 226,948 661,581 127,063 1,015,592
Additions - 175,501 15,305 190,806
Disposals - (159,521) - (159,521)
At 30 June 2020 226,948 677,561 142,368 1,046,877
Depreciation
At 1 July 2019 86,591 541,945 96,132 724,668
Charge for the year 4,391 97,066 17,390 118,847
On disposals - (120,247) - (120,247)
At 30 June 2020 90,982 518,764 113,522 723,268
Net book value
At 30 June 2020 135,966 158,797 28,846 323,609
At 30 June 2019 140,357 119,636 30,931 290,924
5 Debtors 2020 2019
£ £
Trade debtors 593,396 346,377
Related parties (associated company) 45,452 41,452
Other debtors 186,644 22,498
825,492 410,327
6 Creditors: amounts falling due within one year 2020 2019
£ £
Bank loans and overdrafts 72,832 19,497
Obligations under finance lease and hire purchase contracts 78,100 49,484
Trade creditors 675,839 133,708
Taxes and social security 19,987 115,673
Other creditors 97,627 24,912
944,385 343,274
7 Creditors: amounts falling due after one year 2020 2019
£ £
Obligations under finance lease and hire purchase contracts 1,642 18,792
8 Loans 2020 2019
£ £
Creditors include:
Secured bank loans - 19,497
Bank loans are secured against the company owned premises.
9 Capital redemption reserve 2020 2019
£ £
At 1 July 2019 90 90
At 30 June 2020 90 90
10 Other financial commitments 2020 2019
£ £
Total future minimum payments under non-cancellable operating leases 12,894 3,030
11 Related party transactions
As at the year end the company was owed £45,452 (2019: £45,202) from The Forktruck Shop.com Limited, a company in which Mr F Smith has a controlling interest.
12 Controlling party
Mr F Smith holds a controlling interest in the company by virtue of his shareholding.
13 Other information
Solution MHE Limited is a private company limited by shares and incorporated in England. Its registered office is:
118B Burcott Road
Avonmouth
Bristol
BS11 8AB
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