MecWash Systems Limited - Accounts to registrar (filleted) - small 23.1.2

REGISTERED NUMBER: 02878493 (England and Wales)

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

FOR

MECWASH SYSTEMS LIMITED

Page

Company Information

1

Abridged Statement of Financial Position

2

Notes to the Financial Statements

3

DIRECTOR:

J Pattison

SECRETARY:

M C Jones

REGISTERED OFFICE:

Unit A, 64 Hundred

Severn Drive

Tewkesbury Business Park

Tewkesbury

Gloucestershire

GL20 8SF

REGISTERED NUMBER:

02878493 (England and Wales)

AUDITOR:

Andorran Limited (Statutory Auditor)

6 Manor Park Business Centre

Mackenzie Way

Cheltenham

Gloucestershire

GL51 9TX

FIXED ASSETS

Tangible assets

4

365,326

342,635

Investments

5

190

190

365,516

342,825

CURRENT ASSETS

Stocks

995,747

869,829

Debtors

1,412,812

1,136,997

Cash at bank and in hand

487,191

788,437

2,895,750

2,795,263

CREDITORS

Amounts falling due within one year

(1,565,464

)

(1,448,721

)

NET CURRENT ASSETS

1,330,286

1,346,542

TOTAL ASSETS LESS CURRENT LIABILITIES

1,695,802

1,689,367

CREDITORS

Amounts falling due after more than one year

(18,048

)

(33,023

)

PROVISIONS FOR LIABILITIES

(16,053

)

(8,479

)

NET ASSETS

1,661,701

1,647,865

CAPITAL AND RESERVES

Called up share capital

7

120

120

Share premium

29,970

29,970

Retained earnings

1,631,611

1,617,775

SHAREHOLDERS' FUNDS

1,661,701

1,647,865

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

All the members have consented to the preparation of an abridged Statement of Financial Position for the year ended 31 December 2022 in accordance with Section 444(2A) of the Companies Act 2006.

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 director and authorised for issue on 26 May 2023 and were signed by:

J Pattison - Director

1.	STATUTORY INFORMATION

Mecwash Systems 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.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	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 as modified by the revaluation of certain assets.

Turnover

Turnover is recognised on the delivery of completed machines or components to the customer or when the majority of a machine has been paid for prior to shipment, typically 90%. Deposits received in advance of delivery are carried forward in creditors as income in advance. Service income is recognised once the service has taken place.

Tangible fixed assets

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

Freehold property

-

in accordance with the property

Plant and machinery

-

25% on cost

Fixtures and fittings

-

25% on cost

Motor vehicles

-

25% on cost

Assets costing under £250 are written off to revenue.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position 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.

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.

Grants receivable

Grants receivable in respect of research and development and other revenue expenditure is credited to profit and loss account in the period in which the expenditure on which grant assistance is claimed is incurred.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 25 (2021 - 25 ) .

4.	TANGIBLE FIXED ASSETS

Totals

£

COST OR VALUATION

At 1 January 2022

715,947

Additions

56,578

Disposals

(10,445

)

At 31 December 2022

762,080

DEPRECIATION

At 1 January 2022

373,312

Charge for year

33,887

Eliminated on disposal

(10,445

)

At 31 December 2022

396,754

NET BOOK VALUE

At 31 December 2022

365,326

At 31 December 2021

342,635

Cost or valuation at 31 December 2022 is represented by:

Totals

£

Valuation in 2014

75,000

Valuation in 2012

(90,882

)

Valuation in 2021

15,882

Cost

762,080

762,080

If the property had not been revalued it would have been included at the following historical cost:

31.12.22

31.12.21

£

£

Cost

300,882

300,882

Aggregate depreciation

103,211

87,194

The freehold property was revalued by ETP Property Consultants on an open market value basis in December 2014. This valuation was adopted as the deemed cost of the property on transition to FRS102 in 2016. The director has reviewed the value of the property at the year-end date by reference to other, similar local properties and concluded that the value had risen from that valuation to a number approximate to the original purchase price of the property. The property has consequently been revalued to its original cost price of £300,882.

5.	FIXED ASSET INVESTMENTS

Information on investments other than loans is as follows:

Totals

£

COST

At 1 January 2022

and 31 December 2022

190

NET BOOK VALUE

At 31 December 2022

190

At 31 December 2021

190

6.	SECURED DEBTS

The following secured debts are included within creditors:

31.12.22

31.12.21

£

£

Bank loans

33,183

47,840

The bank loan and overdraft are secured by a first charge over the company's freehold property, a debenture over the company's assets and cross-guarantees from both the ultimate parent company and a company under common control.

7.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.22

31.12.21

value:

£

£

120

Ordinary

£1

120

120

8.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditor was unqualified.

Roger Downes FCA (Senior Statutory Auditor)

for and on behalf of Andorran Limited (Statutory Auditor)

9.	OTHER FINANCIAL COMMITMENTS

The company is party to a cross guarantee given to the bankers of its ultimate parent company, Ventureport Limited, in respect of facilities advanced by the bank to that company.

The company is also party to charges registered in favour of HSBC Bank Plc for Scarab Limited, a company in which the sole director is also a director and the majority shareholder.

10.	RELATED PARTY DISCLOSURES

Ventureport Limited

Parent company

During the year a dividend of £250,000 (2021: £1,500,000) was paid to the parent company.

At the end of the year the company was owed £423,526 (2021: £573,172) by the parent company.

Scarab Limited

A company under common control

During the year, the related party invoiced £240,000 (2021: £160,000) on an arm's length basis for management consultancy services.

During the previous year, the related party acquired the building from which the company operates. During the year the related party charged rent to the company on an arm's length basis totalling £49,800 (2021: £13,418). At the year end £24,000 (2021: £Nil) was owed to Scarab Limited and is included in trade creditors.