Nixon Engineering Limited - Period Ending 2015-08-31

Registration number: 00695038

Nixon Engineering Limited

Unaudited Abbreviated Accounts

31 August 2015
 

Nixon Engineering Limited
Contents

Accountants' Report 1

Abbreviated Balance Sheet 2

Notes to the Abbreviated Accounts 4

The following reproduces the text of the accountants' report in respect of the company's annual financial statements, from which the abbreviated accounts (set out on pages 2 to 7) have been prepared.

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Financial Statements of
Nixon Engineering Limited
for the Year Ended 31 August 2015

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Nixon Engineering Limited for the year ended 31 August 2015 set out on pages 4 to 14 from the company's accounting records and from information and explanations you have given us.

As a member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at icaew.com/membershandbook.

This report is made solely to the Board of Directors of Nixon Engineering Limited, as a body, in accordance with the terms of our engagement letter dated 25 March 2014. Our work has been undertaken solely to prepare for your approval the financial statements of Nixon Engineering Limited and state those matters that we have agreed to state to them, as a body, in this report in accordance with AAF 2/10 as detailed at icaew.com/compilation. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Nixon Engineering Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Nixon Engineering 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 Nixon Engineering Limited. You consider that Nixon Engineering Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Nixon Engineering 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.

Dodd & Co Limited
Chartered Accountants
FIFTEEN Rosehill
Montgomery Way
Rosehill Estate
CARLISLE
CA1 2RW

13 May 2016

Page 1

Nixon Engineering Limited
(Registration number: 00695038)
Abbreviated Balance Sheet at 31 August 2015

		Note			2015 £			2014 £
Fixed assets
Tangible fixed assets		2			245,296			255,949
Current assets
Stocks					1,990			2,240
Debtors					92,882			105,744
Cash at bank and in hand					100			100
					94,972			108,084
Creditors: Amounts falling due within one year		3			(110,412)			(128,538)
Net current liabilities					(15,440)			(20,454)
Total assets less current liabilities					229,856			235,495
Creditors: Amounts falling due after more than one year		3			(3,476)			(6,952)
Provisions for liabilities					(6,829)			(7,908)
Net assets					219,551			220,635
Capital and reserves
Called up share capital		4			1,550			1,550
Revaluation reserve					147,471			150,253
Other reserves					44,575			44,575
Profit and loss account					25,955			24,257
Shareholders' funds					219,551			220,635

The notes on pages 4 to 7 form an integral part of these financial statements.
Page 2

Nixon Engineering Limited
(Registration number: 00695038)
Abbreviated Balance Sheet at 31 August 2015
......... continued

For the year ending 31 August 2015 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

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

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the Financial Reporting Standard for Smaller Entities (effective 2008).

Approved by the Board on 13 May 2016 and signed on its behalf by:

.........................................
E W Nixon
Director

.........................................
D Cockett
Company secretary and director

The notes on pages 4 to 7 form an integral part of these financial statements.
Page 3

Nixon Engineering Limited
Notes to the Abbreviated Accounts for the Year Ended 31 August 2015
......... continued

1	Accounting policies

Basis of preparation

The full financial statements, from which these abbreviated accounts have been extracted, have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (Effective April 2008).

The company has net current liabilities at 31 August 2015 and meets its day to day working capital requirements through its bank overdraft which, in common with all such facilities, is repayable on demand. In addition the directors have provided financial support by way of short term loans. On the basis of this support, the directors consider it appropriate to prepare the financial statements on the going concern basis.
  However, should the company not have the support of its bankers, and therefore be unable to continue trading, adjustments would have to be made to reduce the value of assets to their recoverable amounts, to provide for any further liabilities which might arise, and to reclassify fixed assets and long term liabilities as current assets and current liabilities.

Turnover

Turnover represents amounts chargeable, net of value added tax, in respect of the sale of goods and services to customers.

Depreciation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class	Depreciation method and rate
Leasehold property	Straight line over the length of the lease
Plant and machinery	15% reducing balance basis
Fixtures and fittings	15% reducing balance basis and 3 years straight line basis
Motor vehicles	25% reducing balance basis

Stock

Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs.

Deferred tax

Deferred tax is recognised, without discounting, in respect of all timing differences between the treatment of certain items for taxation and accounting purposes, which have arisen but not reversed by the balance sheet date, except as required by the FRSSE. Deferred tax is measured at the rates that are expected to apply in the periods when the timing differences are expected to reverse, based on the tax rates and law enacted at the balance sheet date.

Page 4

Nixon Engineering Limited
Notes to the Abbreviated Accounts for the Year Ended 31 August 2015
......... continued

Hire purchase and leasing

Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term.

Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company, are capitalised in the balance sheet as tangible fixed assets and are depreciated over the shorter of the lease term and their useful lives. The capital elements of future obligations under the leases are included as liabilities in the balance sheet. The interest element of the rental obligation is charged to the profit and loss account over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding. Assets held under hire purchase agreements are capitalised as tangible fixed assets and are depreciated over the shorter of the lease term and their useful lives. The capital element of future finance payments is included within creditors. Finance charges are allocated to accounting periods over the length of the contract and represent a constant proportion of the balance of capital repayments outstanding.

Pensions

The company operates a defined contribution pension scheme. Contributions are recognised in the profit and loss account in the period in which they become payable in accordance with the rules of the scheme.

2	Fixed assets

		Tangible assets £			Total £
Cost
At 1 September 2014		636,979			636,979
Additions		2,245			2,245
At 31 August 2015		639,224			639,224
Depreciation
At 1 September 2014		381,030			381,030
Charge for the year		12,898			12,898
At 31 August 2015		393,928			393,928
Net book value
At 31 August 2015		245,296			245,296
At 31 August 2014		255,949			255,949

Page 5

Nixon Engineering Limited
Notes to the Abbreviated Accounts for the Year Ended 31 August 2015
......... continued

3

Creditors

Creditors includes the following liabilities, on which security has been given by the company:

		2015 £			2014 £
Amounts falling due within one year		57,786			76,876
Amounts falling due after more than one year		3,476			6,952
Total secured creditors		61,262			83,828

4	Share capital

Allotted, called up and fully paid shares

	2015						2014
		No.			£			No.			£
Ordinary shares of £0.10 each		15,000			1,500			15,000			1,500
B Ordinary shares of £0.10 each		500			50			500			50
		15,500			1,550			15,500			1,550

5	Related party transactions

Directors' advances and credits

	2015 Advance/ Credit £	2015 Repaid £	2014 Advance/ Credit £	2014 Repaid £
E W Nixon
Opening advance	-	-	2,465	-
Draw downs	-	-	-	-
Repayment	-	-	-	2,465
	-	-	2,465	2,465
D Cockett
Opening advance	-	-	1,141	-
Draw downs	-	-	-	-
Repayment	-	-	-	1,141
	-	-	1,141	1,141

Page 6

Nixon Engineering Limited
Notes to the Abbreviated Accounts for the Year Ended 31 August 2015
......... continued

6

Control

The company is controlled by the directors who own 85.5% of the called up share capital.

Page 7