McNally and Thompson (UK Contracts) Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 03485540 (England and Wales)

Unaudited Financial Statements

for the Year Ended 31 December 2020

for

McNally and Thompson

(UK Contracts) Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

F G Hood

D R Wealleans

SECRETARY:

F G Hood

REGISTERED OFFICE:

Unit 1

North Hylton Enterprise Park

North Hylton Road

Sunderland

Tyne and Wear

SR5 3AD

REGISTERED NUMBER:

03485540 (England and Wales)

ACCOUNTANTS:

Clive Owen LLP

Chartered Accountants

Kepier House

Belmont Business Park

Durham

DH1 1TW

FIXED ASSETS

Tangible assets

4

154,556

107,965

CURRENT ASSETS

Stocks

5,500

5,500

Debtors

5

2,668,252

2,021,966

Cash at bank and in hand

550,291

296,313

3,224,043

2,323,779

CREDITORS

Amounts falling due within one year

6

2,157,365

1,447,436

NET CURRENT ASSETS

1,066,678

876,343

TOTAL ASSETS LESS CURRENT LIABILITIES

1,221,234

984,308

CREDITORS

Amounts falling due after more than one year

7

(196,834

)

(69,653

)

PROVISIONS FOR LIABILITIES

10

(8,733

)

(8,143

)

NET ASSETS

1,015,667

906,512

CAPITAL AND RESERVES

Called up share capital

11

600

600

Capital redemption reserve

400

400

Retained earnings

1,014,667

905,512

SHAREHOLDERS' FUNDS

1,015,667

906,512

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 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 Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 23 August 2021 and were signed on its behalf by:

F G Hood - Director

1.	STATUTORY INFORMATION

McNally and Thompson (UK Contracts) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

There were no material departures from that standard.

The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year, and also have been consistently applied within the same accounts.

Going concern

The directors assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. The directors make this assessment in respect of a period of at least one year from the date the financial statements are approved.

At the date of approval, the country and indeed the rest of the world is in the midst of dealing with the Covid-19 pandemic. This has impacted unfavourably on the levels of work possible. The company has taken steps to deal with the financial impact of this, including the preparation of revised forecasts. Whilst there is uncertainty around the length of time the Covid-19 pandemic will last and the full impact on the global economy, the directors believe that it is appropriate to continue to adopt the going concern basis of accounting in preparing the financial statements due to the levels of reserves and potential financial support available.

Turnover

Turnover represents the total amount receivable by the company for services provided, excluding value added tax and trade discounts.

Income recognition

Income is recognised as work is carried out with monthly invoices raised for the proportion of contracted work completed by this stage.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Improvements to property

-

10% on cost

Plant and machinery

-

33% on cost

Fixtures and fittings

-

10% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

33.33% on cost

Tangible fixed assets are included at cost less accumulated depreciation and impairment.

Stocks and work in progress

Stocks and work in progress are valued at the lower of cost and selling price less estimated costs to sell, after making due allowance for obsolete and slow moving items. Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.

Profit on contracts is taken as the work is carried out if the final outcome can be assessed with reasonable accuracy. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the period end, by recording turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer.

Financial instruments

Basic financial instruments are recognised at amortised cost with changes recognised in profit and loss.

Taxation

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

Deferred tax

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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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.

Government grants

Capital based grants are accounted for using the accruals model and are credited to the profit and loss account in equal instalments, over the estimated useful life of the related asset. Revenue based grants are credited to the profit and loss account on receipt.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 54 (2019 - 53 ) .

4.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

£

£

£

COST

At 1 January 2020

3,483

533

6,785

Additions

-

-

-

Disposals

-

-

-

At 31 December 2020

3,483

533

6,785

DEPRECIATION

At 1 January 2020

2,147

533

5,360

Charge for year

348

-

441

Eliminated on disposal

-

-

-

At 31 December 2020

2,495

533

5,801

NET BOOK VALUE

At 31 December 2020

988

-

984

At 31 December 2019

1,336

-

1,425

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 January 2020

181,088

22,213

214,102

Additions

122,185

765

122,950

Disposals

(36,435

)

-

(36,435

)

At 31 December 2020

266,838

22,978

300,617

DEPRECIATION

At 1 January 2020

75,976

22,121

106,137

Charge for year

44,685

134

45,608

Eliminated on disposal

(5,684

)

-

(5,684

)

At 31 December 2020

114,977

22,255

146,061

NET BOOK VALUE

At 31 December 2020

151,861

723

154,556

At 31 December 2019

105,112

92

107,965

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

vehicles

£

COST

At 1 January 2020

143,604

Additions

77,185

Disposals

(29,440

)

At 31 December 2020

191,349

DEPRECIATION

At 1 January 2020

40,094

Charge for year

44,394

At 31 December 2020

84,488

NET BOOK VALUE

At 31 December 2020

106,861

At 31 December 2019

103,510

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

2,578,216

1,994,634

Other debtors

-

17,532

Directors' current accounts

73,741

-

Prepayments and accrued income

16,295

9,800

2,668,252

2,021,966

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Bank loans and overdrafts

17,500

-

Hire purchase contracts (see note 8)

39,909

26,951

Trade creditors

1,976,402

1,312,798

Taxation and social security

116,578

81,306

Other creditors

756

751

Directors' current accounts

-

19,820

Accruals and deferred income

6,220

5,810

2,157,365

1,447,436

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2020

2019

£

£

Bank loans - 1-2 years

30,000

-

Bank loans - 2-5 years

90,000

-

Bank loans more 5 yr by instal

12,500

-

Hire purchase contracts (see note 8)

64,334

69,653

196,834

69,653

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

12,500

-

8.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2020

2019

£

£

Net obligations repayable:

Within one year

39,909

26,951

Between one and five years

64,334

69,653

104,243

96,604

Non-cancellable operating

leases

2020

2019

£

£

Within one year

26,265

31,389

Between one and five years

34,189

60,453

60,454

91,842

9.	SECURED DEBTS

The following secured debts are included within creditors:

2020

2019

£

£

Hire purchase contracts

104,243

96,604

Hire purchase contracts are secured on the assets to which they relate.

10.	PROVISIONS FOR LIABILITIES

2020

2019

£

£

Deferred tax

8,733

8,143

Deferred

tax

£

Balance at 1 January 2020

8,143

Accelerated capital allowances

590

Balance at 31 December 2020

8,733

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2020

2019

value:

£

£

600

Ordinary

£1

600

600

12.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 December 2020 and 31 December 2019:

2020

2019

£

£

F G Hood

Balance outstanding at start of year

(19,820

)

-

Amounts advanced

183,561

-

Amounts repaid

(90,000

)

(19,820

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

73,741

(19,820

)

No interest has been charged.