Mego Employment Limited - Period Ending 2021-09-30

Mego Employment Limited

Contents

Balance Sheet	1 to 2
Notes to the Unaudited Financial Statements	3 to 9

Mego Employment Limited

Balance Sheet

30 September 2021

	Note	2021 £	2020 £
Fixed assets
Tangible assets	5	5,095	16,274
Current assets
Debtors	6	888,681	682,397
Cash at bank and in hand		201,796	122,506
		1,090,477	804,903
Creditors: Amounts falling due within one year	7	(898,823)	(592,129)
Net current assets		191,654	212,774
Total assets less current liabilities		196,749	229,048
Creditors: Amounts falling due after more than one year	7	(126,111)	(103,889)
Net assets		70,638	125,159
Capital and reserves
Called up share capital	9	82	82
Profit and loss account		70,556	125,077
Shareholders' funds		70,638	125,159

Mego Employment Limited

Balance Sheet

30 September 2021

For the financial year ending 30 September 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 accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 12 March 2022 and signed on its behalf by:
 

......................................... C N Leonard Director

Company Registration Number: 04867377

Mego Employment Limited

Notes to the Unaudited Financial Statements

Year Ended 30 September 2021

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Sigma House
Oak View Close
Edginswell Park
Torquay
Devon
TQ2 7FF

The principal place of business is:
Discovery House
Steamer Quay Road
Totnes
Devon
TQ9 5AL

These financial statements were authorised for issue by the Board on 12 March 2022.

2	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', including Section 1A, 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 functional and presentational currency is pounds sterling.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities, and is shown net of value added tax.

The company recognises revenue when the value of services provided to date can be reliably measured.

Government grants

Grant income is accounted for using the accruals method. Revenue grants are recognised on a systematic basis over the periods to which costs to which the grants relate are recognised. Capital grants are recognised over the useful life of the related asset on the same basis as depreciation is charged.

Mego Employment Limited

Notes to the Unaudited Financial Statements

Year Ended 30 September 2021

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

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.

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Leasehold property	Straight line over 5 years
Systems development	Straight line over 3 years
Computer equipment	25% straight line
Motor vehicles	Straight line over 3 years
Office equipment	10% and 25% straight line

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as an employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Mego Employment Limited

Notes to the Unaudited Financial Statements

Year Ended 30 September 2021

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.

 

3	Government grants

During the year the company received the following government grants:

- £56,853 Coronavirus Job Retention Scheme
- £10,738 Coronavirus Support

The amount of grants recognised in the financial statements is £67,591 (2020 - £668,265).

4	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 10 (2020 - 10).

Mego Employment Limited

Notes to the Unaudited Financial Statements

Year Ended 30 September 2021

6

Debtors

	Note	2021  £	2020  £
Trade debtors		477,775	240,118
Amounts due from group undertakings	12	338,872	340,247
Other debtors		22,347	69,621
Prepayments and accrued income		49,687	32,411
		888,681	682,397

7

Creditors

Creditors: amounts falling due within one year

	Note	2021 £	2020 £
Due within one year
Loans and borrowings	8	61,667	6,111
Trade creditors		17,817	22,245
Corporation tax		1,892	-
Taxation and social security		224,704	270,011
Other creditors		395,056	86,982
Accruals and deferred income		197,687	206,780
		898,823	592,129

Other creditors are secured by a fixed and floating charge over all of the company's assets.

Creditors: amounts falling due after more than one year

	Note	2021 £	2020 £
Due after one year
Loans and borrowings	8	126,111	103,889

Mego Employment Limited

Notes to the Unaudited Financial Statements

Year Ended 30 September 2021

8	Loans and borrowings

	2021 £	2020 £
Loans and borrowings due after one year
Bank borrowings	126,111	103,889

	2021 £	2020 £
Current loans and borrowings
Bank borrowings	61,667	6,111

The company has received CBILS loans of £110,000 and £90,000.

9	Share capital

Allotted, called up and fully paid shares

	2021		2020
	No.	£	No.	£
Ordinary 'A' shares of £1 each	41	41	41	41
Ordinary 'B' shares of £1 each	41	41	41	41
	82	82	82	82

Mego Employment Limited

Notes to the Unaudited Financial Statements

Year Ended 30 September 2021

10	Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £39,720 (2020 - £42,265).

11	Related party transactions

Advances to directors

2021	At 1 October 2020 £	Advances to director £	Repayments by director £	At 30 September 2021 £
C N Leonard
Advances to director. Interest charged at the official rate.	48,284	21,970	(55,000)	15,254

2020	At 1 October 2019 £	Advances to director £	Repayments by director £	At 30 September 2020 £
C N Leonard
Advances to director. Interest charged at the official rate.	-	48,284	-	48,284

12	Parent and ultimate parent undertaking

The company's immediate parent is Edge Recruits (Holdings) Limited, incorporated in England and Wales.

 The ultimate controlling party is C N Leonard, director.