Mellish Engineering Services Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 13138351 (England and Wales)

MELLISH ENGINEERING SERVICES LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE PERIOD 1 FEBRUARY 2022 TO 30 JUNE 2023

Page

Company Information

1

Balance Sheet

2

to

3

Notes to the Financial Statements

4

to

9

Chartered Certified Accountants' Report

10

DIRECTORS:

C R Keal

O C Keal

M P Rattenberry

P N Roberts

REGISTERED OFFICE:

Unit 4 Bank Court

Weldon Road

Loughborough

LE11 5RF

REGISTERED NUMBER:

13138351 (England and Wales)

ACCOUNTANTS:

Essex Abel Ltd

4 Bank Court

Weldon Road

Loughborough

Leicestershire

LE11 5RF

FIXED ASSETS

Intangible assets

4

378,265

134,678

Tangible assets

5

1,122,584

936,592

1,500,849

1,071,270

CURRENT ASSETS

Stocks

865,794

485,928

Debtors

6

1,553,459

807,677

Cash at bank and in hand

12,536

19,061

2,431,789

1,312,666

CREDITORS

Amounts falling due within one year

7

2,167,606

1,032,117

NET CURRENT ASSETS

264,183

280,549

TOTAL ASSETS LESS CURRENT LIABILITIES

1,765,032

1,351,819

CREDITORS

Amounts falling due after more than one year

8

(1,170,045

)

(1,145,509

)

PROVISIONS FOR LIABILITIES

(221,879

)

(40,212

)

NET ASSETS

373,108

166,098

CAPITAL AND RESERVES

Called up share capital

63

50

Fair value reserve

12

96,159

121,034

Retained earnings

276,886

45,014

373,108

166,098

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the period ended 30 June 2023.

The members have not required the company to obtain an audit of its financial statements for the period ended 30 June 2023 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 Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 15 February 2024 and were signed on its behalf by:

C R Keal - Director

1.	STATUTORY INFORMATION

Mellish Engineering Services 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 length of the accounting period was extended to 17 months meaning that the comparatives are not entirely comparable.

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.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business, is being amortised evenly over its useful life of five years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Development costs will be amortised evenly over their estimated useful life when the project is complete.

Tangible fixed assets

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

Plant and machinery etc

-

33% on cost, 25% on reducing balance and Straight line over 7 years

Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use.

Property and plant whose fair value can be measured reliably are held under the revaluation model and are carried at the revalued amount, being the fair value at the date of valuation, less any subsequent accumulated depreciation and impairment. Revaluation gains and losses are recognised in the statement of other comprehensive income and accumulated in equity.

Stocks

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

Stock and work in progress are valued at the lower of cost and estimated selling price in the ordinary course of business, less the estimated costs of completion and estimated costs necessary to make the sale. Stock is recognised as an expense in the period in which the related revenue is recognised.

The cost of stock is based on the aggregated actual cost price and includes expenditure incurred in acquiring inventory, production or conversion costs, and other costs incurred in bringing them to their existing location and condition.

The cost of work in progress and finished goods includes all production overheads and the attributable proportion of indirect overheads based on the normal level of activity.

At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its estimated selling price in the ordinary course of business, less the estimated costs of completion and estimated costs necessary to make the sale. Provision is made for obsolete, slow moving or defective items where appropriate.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, 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 period 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

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was 61 (2022 - 17 ) .

4.	INTANGIBLE FIXED ASSETS

Computer

Goodwill

software

Totals

£

£

£

COST

At 1 February 2022

134,678

-

134,678

Additions

47,946

258,140

306,086

At 30 June 2023

182,624

258,140

440,764

AMORTISATION

Amortisation for period

51,743

10,756

62,499

At 30 June 2023

51,743

10,756

62,499

NET BOOK VALUE

At 30 June 2023

130,881

247,384

378,265

At 31 January 2022

134,678

-

134,678

5.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST OR VALUATION

At 1 February 2022

953,640

Additions

324,310

At 30 June 2023

1,277,950

DEPRECIATION

At 1 February 2022

17,048

Charge for period

138,318

At 30 June 2023

155,366

NET BOOK VALUE

At 30 June 2023

1,122,584

At 31 January 2022

936,592

Cost or valuation at 30 June 2023 is represented by:

Plant and

machinery

etc

£

Valuation in 2022

154,589

Cost

1,123,361

1,277,950

If plant and machinery had not been revalued it would have been included at the following historical cost:

2023

2022

£

£

Cost

1,123,361

799,051

Aggregate depreciation

128,988

11,884

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade debtors

1,263,257

541,284

Amounts owed by group undertakings

1,699

62,950

Other debtors

288,503

203,443

1,553,459

807,677

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Bank loans and overdrafts (see note 9)

1,008,820

456,468

Hire purchase contracts (see note 10)

214,443

169,195

Trade creditors

694,390

231,583

Taxation and social security

213,423

34,547

Other creditors

36,530

140,324

2,167,606

1,032,117

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2023

2022

£

£

Hire purchase contracts (see note 10)

560,408

662,882

Taxation and social security

84,350

83,177

Other creditors

525,287

399,450

1,170,045

1,145,509

9.

LOANS

An analysis of the maturity of loans is given below:

2023

2022

£

£

Amounts falling due within one year or on demand:

Bank overdrafts

1,008,820

456,468

The company's invoice discounting facility is an integral part of the entities cash management and has therefore been included within bank overdraft.

10.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2023

2022

£

£

Net obligations repayable:

Within one year

214,443

169,195

Between one and five years

560,408

662,882

774,851

832,077

Non-cancellable operating

leases

2023

2022

£

£

Within one year

93,040

82,000

Between one and five years

205,133

307,500

298,173

389,500

11.	SECURED DEBTS

The following secured debts are included within creditors:

2023

2022

£

£

Bank overdrafts

1,008,820

456,468

Hire purchase contracts

774,851

832,077

-

96,875

1,783,671

1,385,420

The bank overdraft including the invoice discounting facility is secured by way of a fixed and floating charge over the assets of the company.

The hire purchase liabilities are secured against the assets financed.

Included in other creditors in the previous year was deferred consideration for which there was a fixed and floating charge in respect of it.

12.

RESERVES

Fair

value

reserve

£

At 1 February 2022

121,034

Transfer

(24,875

)

At 30 June 2023

96,159

Fair value reserve - the aggregate surplus on re-measurement of plant and equipment, net of associated deferred tax.

13.	RELATED PARTY DISCLOSURES

Included in debtors is £1,699 (2022: £62,950) owed from a group undertaking, no interest has been charged.

The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Mellish Engineering Services Limited for the period ended 30 June 2023 which comprise the Income Statement, Balance Sheet and the related notes from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Association of Chartered Certified Accountants, we are subject to its ethical and other professional requirements which are detailed at http://www.accaglobal.com/rulebook.

This report is made solely to the Board of Directors of Mellish Engineering Services Limited, as a body, in accordance with the terms of our engagement letter dated 20 May 2021. Our work has been undertaken solely to prepare for your approval the financial statements of Mellish Engineering Services Limited and state those matters that we have agreed to state to the Board of Directors of Mellish Engineering Services Limited, as a body, in this report in accordance with the requirements of the Association of Chartered Certified Accountants as detailed at http://www.accaglobal.com/factsheet163. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Mellish Engineering Services Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Mellish Engineering Services Limited. You consider that Mellish Engineering Services Limited is exempt from the statutory audit requirement for the period.

We have not been instructed to carry out an audit or a review of the financial statements of Mellish Engineering Services Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Essex Abel Ltd

4 Bank Court

Weldon Road

Loughborough

Leicestershire

LE11 5RF

16 February 2024