M-Tec Engineering Solutions Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 04241025 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

30 JUNE 2020

FOR

M-TEC ENGINEERING SOLUTIONS LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

K J McKenna

A E McKenna

SECRETARY:

K J McKenna

REGISTERED OFFICE:

10 Frederick Street

Birmingham

West Midlands

B1 3HE

REGISTERED NUMBER:

04241025 (England and Wales)

ACCOUNTANTS:

Prime

Chartered Accountants

No. 3 Caroline Court

13 Caroline Street

St Paul's Square

Birmingham

B3 1TR

FIXED ASSETS

Tangible assets

3

23,016

14,986

CURRENT ASSETS

Debtors

4

946,780

2,168,623

Cash at bank and in hand

3,199,723

2,179,186

4,146,503

4,347,809

CREDITORS

Amounts falling due within one year

5

739,323

1,053,864

NET CURRENT ASSETS

3,407,180

3,293,945

TOTAL ASSETS LESS CURRENT LIABILITIES

3,430,196

3,308,931

PROVISIONS FOR LIABILITIES

3,445

1,700

NET ASSETS

3,426,751

3,307,231

CAPITAL AND RESERVES

Called up share capital

50

50

Capital redemption reserve

50

50

Retained earnings

3,426,651

3,307,131

SHAREHOLDERS' FUNDS

3,426,751

3,307,231

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 2020 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 Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 7 April 2021 and were signed on its behalf by:

K J McKenna - Director

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

-

20% on cost

Computer equipment

-

33.33% on cost

Government grants

Government grants are accounted for on an accruals basis.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the income statement, 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 that have been enacted or substantively enacted by the balance sheet date.

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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss.

For non-financial assets, the asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of the asset is the higher of its fair value less costs to sell and its value in use.

For financial assets carried at amortised costs, the amount of an impairment is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset's carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for the decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

2.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 14 (2019 - 14 ) .

3.	TANGIBLE FIXED ASSETS

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 July 2019

79,438

34,095

113,533

Additions

11,636

5,497

17,133

At 30 June 2020

91,074

39,592

130,666

DEPRECIATION

At 1 July 2019

69,892

28,655

98,547

Charge for year

5,250

3,853

9,103

At 30 June 2020

75,142

32,508

107,650

NET BOOK VALUE

At 30 June 2020

15,932

7,084

23,016

At 30 June 2019

9,546

5,440

14,986

4.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

521,994

1,192,296

Other debtors

424,786

976,327

946,780

2,168,623

5.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade creditors

226,293

712,880

Amounts owed to group undertakings

212,555

-

Taxation and social security

181,941

213,658

Other creditors

118,534

127,326

739,323

1,053,864

6.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2020

2019

£

£

Within one year

43,400

-

7.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

During the year £324,996 (2019: £Nil) was advanced to K J McKenna. At the year end £261,068 was due from K J McKenna (2019: £2907 due to) and is included in other debtors. Interest has been accrued on the outstanding balance which has now been fully repaid.

8.	RELATED PARTY DISCLOSURES

During the year, the company made net loans of £Nil (2019: £530,000) to Hansmack Properties Limited, a company in which K J McKenna is a director and shareholder. At the year end, £Nil (2019: £530,000) was due from this company, and is included within other debtors.

During the year, the company made loans of £1,020,000 (2019: £Nil) to KJM Property Investments Limited, a company in which K J McKenna is a director and shareholder. During the year, the company received loan repayments of £920,000 (2019: £180,034) from this company. During the year, KJM Property Investments Limited charged M-Tec Engineering Solutions Limited £49,000 (2019: £58,800) for rent. At the year end £95,120 (2019: £Nil) was due from KJM Property Investments Limited, and is included in other debtors.

9.	POST BALANCE SHEET EVENTS

The economy continues to be affected by the Covid-19 pandemic which began a few months before the year end. The directors have considered the impact of this to the business after discussion with key stakeholders and are satisfied that at the time of approval of the financial statements the company has sufficient resources to be able to continue trading for the foreseeable future.

10.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is K J McKenna by virtue of his shareholding in the parent company, Red Oaks Group Limited.

11.	ULTIMATE PARENT COMPANY

The company's ultimate parent company is Red Oaks Group Limited, a company incorporated in England and Wales.