Mode Construction Ltd Filleted accounts for Companies House (small and micro)

MODE CONSTRUCTION LTD - Company Information

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COMPANY REGISTRATION NUMBER: 09432863

Mode Construction Ltd

Filleted Unaudited Financial Statements

28 February 2021

Mode Construction Ltd

Financial Statements

Year ended 28 February 2021

Contents	Pages

Balance sheet	1 to 2

Notes to the financial statements	3 to 7

Mode Construction Ltd

Balance Sheet

28 February 2021

	2021		2020
Note	£	£	£

Fixed assets

Tangible assets	5		105,547	20,675

Current assets

Debtors	6	89,022	153,944
Cash at bank and in hand		577,600	659,790
		---------	---------
		666,622	813,734

Creditors: amounts falling due within one year	7	463,158		498,613
		---------		---------
Net current assets			203,464	315,121
			---------	---------
Total assets less current liabilities			309,011	335,796

Provisions

Taxation including deferred tax	20,054	3,928
	---------	---------
Net assets	288,957	331,868
	---------	---------

Capital and reserves

Called up share capital	50	100
Profit and loss account	288,907	331,768
	---------	---------
Shareholders funds	288,957	331,868
	---------	---------

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 statement of comprehensive income has not been delivered.

For the year ending 28 February 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

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

Mode Construction Ltd

Balance Sheet (continued)

28 February 2021

These financial statements were approved by the board of directors and authorised for issue on 26 November 2021 , and are signed on behalf of the board by:

Mr G W Lane

Director

Company registration number: 09432863

Mode Construction Ltd

Notes to the Financial Statements

Year ended 28 February 2021

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 22-26 King Street, King's Lynn, Norfolk, PE30 1HJ.

2. Statement of compliance

These individual 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.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. When the outcome of a transaction involving the rendering of services can be reliably estimated, revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period. When the outcome of a transaction involving the rendering of services cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable. Revenue is deferred and accrued where required depending on the stage of completion at the reporting date. Stage of completion is measured by the proportion of costs to date compared to the total anticipated costs on a contract.

Income tax

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	-	25% reducing balance
Equipment	-	3 years straight line

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the balance sheet and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. 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.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 4 (2020: 3 ).

5. Tangible assets

	Plant and machinery	Motor vehicles	Equipment	Total
	£	£	£	£
Cost
At 1 March 2020	18,211	–	22,521	40,732
Additions	51,932	44,046	2,118	98,096
	--------	--------	--------	---------
At 28 February 2021	70,143	44,046	24,639	138,828
	--------	--------	--------	---------
Depreciation
At 1 March 2020	10,157	–	9,900	20,057
Charge for the year	6,972	–	6,252	13,224
	--------	--------	--------	---------
At 28 February 2021	17,129	–	16,152	33,281
	--------	--------	--------	---------
Carrying amount
At 28 February 2021	53,014	44,046	8,487	105,547
	--------	--------	--------	---------
At 29 February 2020	8,054	–	12,621	20,675
	--------	--------	--------	---------

6. Debtors

	2021	2020
	£	£
Trade debtors	85,393	72,361
Other debtors	3,629	81,583
	--------	---------
	89,022	153,944
	--------	---------

7. Creditors: amounts falling due within one year

	2021	2020
	£	£
Trade creditors	160,505	221,732
Corporation tax	25,245	24,487
Social security and other taxes	8,244	3,548
Other creditors	269,164	248,846
	---------	---------
	463,158	498,613
	---------	---------

8. Other financial commitments

Operating lease commitments not included in the balance sheet amounted to £20,161 (2020: £25,952).

9. Directors' advances, credits and guarantees

During the year balances owed by directors to the company were repaid in full. The balances were interest free and repayable on demand.

10. Related party transactions

As at the balance sheet date the company owed its directors £2,754 (2020: the directors owed the company £15,239), with net transactions of £17,993 (2020: £18,442) taking place between the company and the directors. During the year the company purchased shares owned by a director and shareholder for £132,000 (2020: £Nil). There were no further transactions which require disclosure under FRS 102 Section 1A.