J Mills (Contractors) Limited - Period Ending 2020-06-30
J Mills (Contractors) Limited - Period Ending 2020-06-30
Registration number:
J Mills (Contractors) Limited
for the Year Ended 30 June 2020
J Mills (Contractors) Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account and Statement of Retained Earnings |
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Statement of Comprehensive Income |
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Balance Sheet |
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Statement of Changes in Equity |
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Notes to the Financial Statements |
J Mills (Contractors) Limited
Company Information
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Directors |
Dr P R Noall Mr S G Hughes-Solomon Mr P Noall |
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Company secretary |
Mr P Noall |
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Registered office |
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Bankers |
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Auditors |
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J Mills (Contractors) Limited
Strategic Report for the Year Ended 30 June 2020
The directors present their strategic report for the year ended 30 June 2020.
Principal activity
The principal activity of the company is split into two activities. Firstly, large commercial refurbishment and small commercial works. Secondly, responsive and planned preventative maintenance
Fair review of the business
Highlights
This has been a difficult year for both the company, the industry, and the economy as a whole. The pandemic that hit just over half-way through our financial year had some immediate effects on the business, even before the nationwide lockdown was introduced in March 2020, with supply chains disrupted and work delayed or cancelled.
Nonetheless, the company took advantage of the furlough scheme introduced by the government and consequently managed to retain all staff. This is to be celebrated, as not every business was so fortunate.
Contract Work
While the first half of the year looked promising, the second half was affected dramatically by an almost immediate and comprehensive halt to both confirmed and planned projects. Margins on completed works remained steady, but sales dipped to the extent that the company’s healthy reserves were required to keep the business on an even keel.
Post year-end, works have slowly but steadily increased, so we are hopeful that the worst is behind us. We do, however, remain mindful that the effects of the pandemic – as well as continued Brexit complications – could mean the company must work hard to stay resilient.
Responsive Maintenance work
Demand for Responsive Maintenance work dipped only slightly and temporarily at the start of lockdown in March 2020, but recovered relatively quickly. This meant that we were able to keep the vast majority of our workforce out doing their jobs – with only minor adjustments to procedures relating to Covid-safety.
Sales and margins have remained strong, and provide a good foundation on which to build as we transition to post-lockdown life. Management strengthening has also been a key area for the department, and this continues to be the basis on which this side of the company can develop as a business unit.
Summary
2019-20 has been a tough year, dealing with the pandemic and Brexit uncertainty. The effects have been felt well into the next financial year, but the company remains strong and optimistic for the future.
Most of all, the hard work and commitment of our employees has underpinned the company’s resilience in the face of uncertainty and adversity.
Principal risks and uncertainties
As the firm grows, there are attendant risks in terms of managing the growth, taking on more demanding work, improving our management systems and meeting the needs of our clients within a much more ambiguous and uncertain world. We endeavour to track these uncertainties and ensure the firm continues to improve and both anticipate and respond to such pressures to change.
J Mills (Contractors) Limited
Strategic Report for the Year Ended 30 June 2020
Approved by the
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Director
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Director
J Mills (Contractors) Limited
Directors' Report for the Year Ended 30 June 2020
The directors present their report and the financial statements for the year ended 30 June 2020.
Directors of the company
The directors who held office during the year were as follows:
Within these financial statements the company has chosen to set out within the strategic report information required to be stated within the directors report, this includes information such as the future developments of the business.
Dividends
The directors have issued dividends of £305,856 during the year ended 30 June 2020 (2019: £575,939).
Financial instruments
Objectives and policies
The company holds or issues financial instruments in order to achieve three main objectives, being:
i) to finance its operations;
ii) to manage its exposure to interest, credit and liquidity risks arising from its operations and from its sources of finance; and
iii) for trading purposes.
In addition various financial instruments (e.g. trade debtors, trade creditors, accruals and prepayments) arise directly from the company's operations.
Transactions in financial instruments result in the company assuming or transferring to another party one or more of the financial risks described below.
J Mills (Contractors) Limited
Directors' Report for the Year Ended 30 June 2020
Price risk, credit risk, liquidity risk and cash flow risk
Interest rate risk
The company manages the interest rate risk by agreeing terms of finance with hire purchase providers in advance and also managing the invoice finacing facility so as to not draw down unused amounts.
Credit risk
The company monitors credit risk closely and considers that its current policies of credit checks meets its objectives of managing exposure to credit risk.
The company has no significant concentrations of credit risk. Amounts shown in the balance sheet best represent the maximum credit risk exposure in the event other parties fail to perform their obligations under financial instruments.
Liquidity risk
Working capital and liquidity is managed as part of day to day business routines such as the company has no significant concentrations of liquidity risk. Working capital facilities like the invoice financing allows to maintain a good level of liquid funds.
J Mills (Contractors) Limited
Directors' Report for the Year Ended 30 June 2020
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved by the
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Director
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Director
J Mills (Contractors) Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
J Mills (Contractors) Limited
Independent Auditor's Report to the Members of J Mills (Contractors) Limited
Opinion
We have audited the financial statements of J Mills (Contractors) Limited (the 'company') for the year ended 30 June 2020, which comprise the Profit and Loss Account and Statement of Retained Earnings, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 30 June 2020 and of its loss for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
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the directors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
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the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
J Mills (Contractors) Limited
Independent Auditor's Report to the Members of J Mills (Contractors) Limited
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors’ remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 7], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
J Mills (Contractors) Limited
Independent Auditor's Report to the Members of J Mills (Contractors) Limited
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
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Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. |
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. |
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Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. |
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Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. |
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Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the company audit. We remain solely responsible for our audit opinion. |
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Use of our report
J Mills (Contractors) Limited
Independent Auditor's Report to the Members of J Mills (Contractors) Limited
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
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For and on behalf of
Riverside House
Kings Reach Business Park
Yew Street
Stockport
SK4 2HD
J Mills (Contractors) Limited
Profit and Loss Account and Statement of Retained Earnings for the Year Ended 30 June 2020
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Note |
2020 |
2019 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Other operating income |
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- |
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Operating (loss)/profit |
( |
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Other interest receivable and similar income |
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Interest payable and similar charges |
( |
- |
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2,612 |
3,174 |
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(Loss)/profit before tax |
( |
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Taxation |
( |
( |
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(Loss)/profit for the financial year |
( |
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Retained earnings brought forward |
6,576,254 |
6,487,807 |
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Dividends paid |
( |
( |
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Retained earnings carried forward |
6,178,218 |
6,576,254 |
J Mills (Contractors) Limited
Statement of Comprehensive Income for the Year Ended 30 June 2020
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2020 |
2019 |
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(Loss)/profit for the year |
( |
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Total comprehensive income for the year |
( |
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J Mills (Contractors) Limited
(Registration number: 00439056)
Balance Sheet as at 30 June 2020
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Note |
2020 |
2019 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks and work in progress |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
- |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Other reserves |
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Profit and loss account |
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Total equity |
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J Mills (Contractors) Limited
(Registration number: 00439056)
Balance Sheet as at 30 June 2020
Approved and authorised by the
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Director
.........................................
Director
J Mills (Contractors) Limited
Statement of Changes in Equity for the Year Ended 30 June 2020
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Share capital |
Other reserves |
Profit and loss account |
Total |
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At 1 July 2019 |
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Loss for the year |
- |
- |
( |
( |
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Total comprehensive income |
- |
- |
( |
( |
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Dividends |
- |
- |
( |
( |
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At 30 June 2020 |
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Share capital |
Other reserves |
Profit and loss account |
Total |
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At 1 July 2018 |
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Profit for the year |
- |
- |
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Total comprehensive income |
- |
- |
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Dividends |
- |
- |
( |
( |
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At 30 June 2019 |
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J Mills (Contractors) Limited
Notes to the Financial Statements for the Year Ended 30 June 2020
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General information |
The company is a private company limited by share capital, incorporated in UK.
The principal activity of the Company is split into two activities. Firstly, large commercial refurbishment and small commercial works. Secondly, responsive and planned preventative maintenance.
The address of its registered office is:
These financial statements were authorised for issue by the
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
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' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The company is a qualifying entity and its accounts are included in those of the group Company Marplace (Number 754) Limited which are publicly available at Companies House or at the Head Office.
The company have taken advantage of the disclosure exemption available to not include a cash flow statement as this statement is included within the consolidated financial statements of Marplace (Number 754) Limited.
Name of parent of group
These financial statements are consolidated in the financial statements of Marplace (Number754) Limited.
The financial statements of Marplace (Number754) Limited may be obtained from 8 Brindley Road
City Park
Old Trafford
Manchester
M16 9HQ.
Going concern
The financial statements have been prepared on a going concern basis.
J Mills (Contractors) Limited
Notes to the Financial Statements for the Year Ended 30 June 2020
Key sources of estimation uncertainty
In the application of the Company's accounting policies, which are described in note 2, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Revenue recognition
For the large commercial refurbishment works revenue is recognised according to the stage of completion.
For work carried out where an independent valuation has not been obtained; work in progress is provided along with the estimated profit margin. Contract work in progress is valued at the anticipated net sales value of work done after provision for contingencies. The profit recognised is dependent upon the completeness of the particular project.
For the responsive and planned preventative maintenance work revenue is recognised upon completion of services.
Retentions are recognised upon completion of the project within revenue.
J Mills (Contractors) Limited
Notes to the Financial Statements for the Year Ended 30 June 2020
Tax
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible timing differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current or deferred tax for the year is recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.
J Mills (Contractors) Limited
Notes to the Financial Statements for the Year Ended 30 June 2020
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Assets held under finance leases are depreciated in the same manner as owned assets.
At each balance sheet date, the Company reviews the carrying amounts of its property, plant and equipment to determine whether there is any indication that any items of property, plant and equipment have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of the asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately.
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
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Asset class |
Depreciation method and rate |
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Fixtures & Fittings |
15% Reducing balance basis |
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Office Equipment |
25% Straight line basis |
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Motor vehicles |
25% Reducing balance basis |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade and other debtors that are receivable within one year and do not constitute a financing transaction are recorded at the undiscounted amount expected to be received, net of impairment. Those that are receivable after more than one year or that constitute a financing transaction are recorded initially at fair value less transaction costs and subsequently at amortised cost, net of impairment.
J Mills (Contractors) Limited
Notes to the Financial Statements for the Year Ended 30 June 2020
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Costs, which comprise direct production costs and an appropriate allocation of production overheads, are based on the method most appropriate to the type of inventory class, but usually on a first-in-first-out basis. Net realisable value is based on the estimated selling price less any estimated completion or selling costs.
When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs.
Impairment of financial assets
Financial assets, are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected.
For all other financial assets, objective evidence of impairment could include:
• significant financial difficulty of the issuer or counterparty; or
• breach of contract, such as a default or delinquency in interest or principal payments; or
• it becoming probable that the borrower will enter bankruptcy or financial re-organisation; or
• the disappearance of an active market for that financial asset because of financial difficulties.
For certain categories of financial asset, such as trade receivables, assets that are assessed not to be impaired individually are, in addition, assessed for impairment on a collective basis. Objective evidence of impairment for a portfolio of receivables could include the Company's past experience of collecting payments, an increase in the number of delayed payments in the portfolio past the average credit period of 50 days, as well as observable changes in national or local economic conditions that correlate with default on receivables.
For financial assets carried at amortised cost, the amount of the impairment loss recognised 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. The impairment loss is recognised in profit or loss.
For financial assets carried at cost, the amount of the impairment loss is measured as the difference between the asset's carrying amount and the present value of the estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment loss will not be reversed in subsequent periods.
J Mills (Contractors) Limited
Notes to the Financial Statements for the Year Ended 30 June 2020
The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables, where the carrying amount is reduced through the use of an allowance account. When a trade receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognised in profit or loss.
For financial assets measured at amortised cost, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Related parties
For the purposes of these financial statements, a party is considered to be related to the Company if:
(i)the party has the ability, directly or indirectly, through one or more intermediaries, to control the Company or exercise significant influence over the company in making financial and operating policy decisions, or has joint control over the Company;
(ii)the Company and the party are subject to common control;
(iii)the party is an associate of the Company or a joint venture in which the Company is a venturer;
(iv)the party is a member of key management personnel of the Company or the Company’s parent, or a close family member of such an individual, or is an entity under the control, joint control or significant influence of such individuals;
(v)the party is a close family member of a party referred to in (i) or is an entity under the control, joint control or significant influence of such individuals;
(vi)the party is a post-employment benefit plan which is for the benefit of employees of the Company or of any entity that is a related party of the Company; or
(vii)the party, or any member of a group of which it is part, provides key management personnel services to the company or its parent.
Close family members of an individual are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the entity.
J Mills (Contractors) Limited
Notes to the Financial Statements for the Year Ended 30 June 2020
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Employee benefits
Short-term employee benefits are recognised as an expense in the period in which they are incurred.
The obligations for contributions to defined contribution scheme are recognised as an expense in the period they are incurred. The assets of the scheme are held separately from those of the Company in an independently administered fund.
Provisions
Provisions are recognised when the Company has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
|
Revenue |
The analysis of the company's revenue for the year from continuing operations is as follows:
|
2020 |
2019 |
|
|
Sales, UK |
|
|
J Mills (Contractors) Limited
Notes to the Financial Statements for the Year Ended 30 June 2020
|
Operating (loss)/profit |
Arrived at after charging/(crediting)
|
2020 |
2019 |
|
|
Depreciation expense |
|
|
|
Operating lease expense - plant and machinery |
|
|
|
Loss on disposal of property, plant and equipment |
|
- |
|
Auditor's remuneration |
10,850 |
9,923 |
|
Auditor's remuneration - non audit services |
- |
|
|
Hire purchase interest |
2,090 |
- |
|
Staff costs including directors' remuneration - salaries |
2,070,226 |
2,167,594 |
|
Staff costs including directors' remuneration - defined contribution plans |
164,345 |
151,041 |
|
Other interest receivable and similar income |
|
2020 |
2019 |
|
|
Interest income on bank deposits |
|
|
|
Other finance income |
|
- |
|
|
|
|
Interest payable and similar expenses |
|
2020 |
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
J Mills (Contractors) Limited
Notes to the Financial Statements for the Year Ended 30 June 2020
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2020 |
2019 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Other short-term employee benefits |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
Redundancy costs |
- |
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2020 |
2019 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
Other departments |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2020 |
2019 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
128,230 |
28,150 |
During the year the number of directors for whom retirement benefits are accruing:
|
2020 |
2019 |
|
|
Accruing benefits under money purchase pension scheme |
|
|
J Mills (Contractors) Limited
Notes to the Financial Statements for the Year Ended 30 June 2020
|
Auditors' remuneration |
|
2020 |
2019 |
|
|
Audit of the financial statements |
|
|
|
2020 |
2019 |
|
|
Auditors fees for non-audit services |
|
|
|
Taxation |
Tax charged/(credited) in the income statement
|
2020 |
2019 |
|
|
Current taxation |
||
|
UK corporation tax |
- |
|
|
UK corporation tax adjustment to prior periods |
|
- |
|
1,996 |
113,812 |
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2019 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2020 |
2019 |
|
|
(Loss)/profit before tax |
( |
|
|
Corporation tax at standard rate |
( |
|
|
Effect of tax losses |
|
- |
|
Increase in UK and foreign current tax from adjustment for prior periods |
|
- |
|
Tax increase/(decrease) from effect of capital allowances and depreciation |
|
( |
|
Tax increase from other short-term timing differences |
|
|
|
Tax decrease arising from group relief |
- |
( |
|
Total tax charge |
|
|
J Mills (Contractors) Limited
Notes to the Financial Statements for the Year Ended 30 June 2020
|
Tangible assets |
|
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
|
Cost or valuation |
|||
|
At 1 July 2019 |
|
- |
|
|
Additions |
|
|
|
|
Disposals |
( |
- |
( |
|
At 30 June 2020 |
|
|
|
|
Depreciation |
|||
|
At 1 July 2019 |
|
- |
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
( |
- |
( |
|
At 30 June 2020 |
|
|
|
|
Carrying amount |
|||
|
At 30 June 2020 |
|
|
|
|
At 30 June 2019 |
|
- |
|
|
Stocks |
|
2020 |
2019 |
|
|
Work in progress |
|
|
|
Stock |
|
|
|
|
|
During the year the carrying amounts of stock sold was £Nil (2019: £Nil).
J Mills (Contractors) Limited
Notes to the Financial Statements for the Year Ended 30 June 2020
|
Debtors |
|
Note |
2020 |
2019 |
|
|
Trade debtors |
795,593 |
1,592,689 |
|
|
Provision for impairment of debtors |
(8,349) |
(3,924) |
|
|
Trade debtors |
|
|
|
|
Amounts due from group undertaking |
|
|
|
|
Other debtors |
|
|
|
|
Prepayments |
|
|
|
|
Income tax asset |
65,328 |
- |
|
|
|
|
||
|
Less non-current portion |
( |
( |
|
|
Total current trade and other debtors |
|
|
|
Creditors |
|
Note |
2020 |
2019 |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Social security and other taxes |
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
Other payables |
|
|
|
|
Accrued expenses |
|
|
|
|
Income tax liability |
- |
61,988 |
|
|
|
|
||
|
Due after one year |
|||
|
Loans and borrowings |
|
- |
Creditors amounts falling due within one year includes the following liabilities, on which security has been given by the company:
Bank loan security:
There is an unlimited intercompany composite guarantee with National Westminster Bank PLC between the company and its parent Marplace (Number 754) Limited. The companies have guaranteed to undertake unlimited liability in respect of any obligations due to the bank.
J Mills (Contractors) Limited
Notes to the Financial Statements for the Year Ended 30 June 2020
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £
|
Share capital |
Allotted, called up and fully paid shares
|
2020 |
2019 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
1,200 |
|
1,200 |
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. All ordinary shares rank equally with regard to the Company's residual assets.
Called-up share capital represents the nominal value of shares that have been issued.
|
Loans and borrowings |
|
2020 |
2019 |
|
|
Non-current loans and borrowings |
||
|
HP and finance lease liabilities |
|
- |
|
2020 |
2019 |
|
|
Current loans and borrowings |
||
|
Bank overdrafts |
- |
|
|
HP and finance lease liabilities |
|
- |
|
|
|
|
J Mills (Contractors) Limited
Notes to the Financial Statements for the Year Ended 30 June 2020
|
Obligations under leases and hire purchase contracts |
Finance leases
The total of future minimum lease payments is as follows:
|
2020 |
2019 |
|
|
Not later than one year |
|
- |
|
Later than one year and not later than five years |
|
- |
|
|
- |
|
Commitments |
Capital commitments
The balance of the commitment due within one year is £173,586 (2019: £174,379), the remaining balance is all due after one year, but within five years.
The total amount contracted for but not provided in the financial statements was £
Other financial commitments
The total amount of other financial commitments not provided in the financial statements was £
|
Contingent liabilities |
There is an inter-company guarantee in place with the parent company Marplace (Number 754) Limited. There is unlimited security on the guarantee in favour of National Westminster Bank Plc.
The company have been informed that they are potentially liable to make a financial contribution to the Plumbing Mechanical Services (UK) Industry Pension Scheme as the company have triggered a statutory debt.
|
Parent and ultimate parent undertaking |
The ultimate controlling party is
The company is controlled by Marplace (Number754) Limited, a company incorporated in the United Kingdom.