| Mechanics Centre limited |
|
| Chartered Accountants' report to the board of directors on the preparation of the unaudited abbreviated accounts of Mechanics Centre limited for the year ended 31 March 2016 |
| In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the abbreviated accounts of Mechanics Centre limited for the year ended 31 March 2016 which comprise of the balance sheet and the related notes from the company’s accounting records and from information and explanations you have given us. |
| The financial reporting framework that has been applied in their preparation is applicable law and the Financial Reporting Standards (United Kingdom Generally Accepted Practice) and Financial Reporting Standard for Smaller Entities (effective January 2015. |
As a practising member firm of the Institute of Chartered Accountants in England and Wales, 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 Mechanics Centre limited, as a body, in accordance with the terms of our engagement letter dated 23rd April 2008. Our work has been undertaken solely to prepare for your approval the accounts of Mechanics Centre limited and state those matters that we have agreed to state to the Board of Directors of Mechanics Centre limited, 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 Mechanics Centre limited and its Board of Directors as a body for our work or for this report. |
| It is your duty to ensure that Mechanics Centre limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Mechanics Centre limited. You consider that Mechanics Centre 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 accounts of Mechanics Centre 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 abbreviated accounts. |
|
| APPLEBY & WOOD |
| Chartered Accountants |
| Bolton Enterprise centre |
| Washington St |
| Bolton |
| Greater Manchester |
| BL3 5EY |
|
| 19 July 2016 |
|
| Mechanics Centre limited |
| Registered number: |
01983373 |
| Abbreviated Balance Sheet |
| as at 31 March 2016 |
|
| Notes |
|
|
2016 |
|
|
2015 |
| £ |
£ |
| Fixed assets |
| Tangible assets |
2 |
|
|
49,258 |
|
|
48,020 |
|
| Current assets |
| Stocks |
|
|
2,284 |
|
|
2,364 |
| Debtors |
|
|
35,852 |
|
|
38,461 |
| Cash at bank and in hand |
|
|
57,389 |
|
|
62,032 |
|
|
|
95,525 |
|
|
102,857 |
|
| Creditors: amounts falling due within one year |
|
|
(31,233) |
|
|
(38,940) |
|
| Net current assets |
|
|
|
64,292 |
|
|
63,917 |
|
| Total assets less current liabilities |
|
|
|
113,550 |
|
|
111,937 |
|
| Creditors: amounts falling due after more than one year |
|
|
|
(24,365) |
|
|
(24,971) |
|
|
|
| Net assets |
|
|
|
89,185 |
|
|
86,966 |
|
|
|
|
|
|
|
|
| Capital and reserves |
| Profit and loss account |
|
|
|
89,185 |
|
|
86,966 |
|
| Shareholder's funds |
|
|
|
89,185 |
|
|
86,966 |
|
|
|
|
|
|
|
|
| The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006. |
| The member has not required the company to obtain an audit in accordance with section 476 of the Act. |
| The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts. |
| The accounts have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime, and the provisions of the Financial Reporting Standard for Smaller Entities (effective January 2015). |
|
| The notes on pages 3 to 4 form an integral part of these financial statements. |
|
| H Spooner |
| Director |
| Approved by the board on 19 July 2016 |
|
| Mechanics Centre limited |
| Notes to the Abbreviated Accounts |
| for the year ended 31 March 2016 |
|
| 1 |
Accounting policies |
|
|
Basis of preparation |
|
The accounts have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015). |
|
|
The accounts are in respect of the year ended 31st March 2016 with comparative figures for the year to 31st March 2015 treating the company as a going concern. |
|
|
Turnover |
|
Turnover represents the value, net of value added tax and discounts, of goods provided to customers and work carried out in respect of services provided to customers. |
|
|
Donations and Fees |
|
The balance of donations and fees over expenditure is carried forward in a donations fund representing initial monies accumulated towards the premium costs of the premises. |
|
|
|
Stocks |
|
Stock is valued at the lower of cost and net realisable value. |
|
|
Taxation |
|
Taxation is provided on bank interest received and bar food trade and room hire except to the extent that losses and covenants paid are set against this income. |
|
|
Deferred taxation |
|
Full provision is made for deferred taxation resulting from timing differences between the recognition of gains and losses in the accounts and their recognition for tax purposes. Deferred taxation is calculated on an un-discounted basis at the tax rates which are expected to apply in the periods when the timing differences will reverse. |
|
|
Depreciation |
|
Depreciation is charged at the following rates: - |
|
Premium on leases |
Over the period of 40 years (perviously over the lease 125 years) |
|
Refurbishment costs |
Over 5 years |
|
Decorating & Designs |
Over 10 years |
|
Depreciation is provided on tangible fixed assets at 20% to 33.3% p.a. |
|
|
Grant Funding |
|
Grants are credited to profit and loss account over the respective periods of depreciation applied to the tangible fixed assets they have financed, being Décor, Designs, Refurbishment and lease premium. |
|
|
Pensions |
|
The company operates a defined contribution pension scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme. |
|
|
|
| 2 |
Tangible fixed assets |
£ |
|
|
Cost |
|
At 1 April 2015 |
263,268 |
|
Additions |
3,522 |
|
At 31 March 2016 |
266,790 |
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 April 2015 |
215,248 |
|
Charge for the year |
2,284 |
|
At 31 March 2016 |
217,532 |
|
|
|
|
|
|
|
|
Net book value |
|
At 31 March 2016 |
49,258 |
|
At 31 March 2015 |
48,020 |
|
|
|
|
|
|
|
|
Included in the Fixed Assets is cost of Land & Buildings £63,223 net book value £48,020 being the initial premium on the lease. |
|
|
The company together with the Mechanics Centre Museum of Labour and Trades' Union History Trust Limited has authorised and contracted for capital expenditure of £Nil (2015 £Nil). |
|
| 3 |
Share Capital |
|
The company is limited by guarantee and does not have share capital. |
|
| 4 |
Future Commitments |
|
The company has entered into a lease with the Mechanics Centre Museum of Labour and Trades' Union History Trust - "The Trust" a registered Charity being a similar lease to the one from Manchester City Council. The term is 125 years at a peppercorn rent from 1989. The companies also pay ongoing service and maintenance charges for the building and common parts to Manchester City Council in total £18,000 (2015 £31,865) with Mechanics Centre share based upon the services utilised by it - presently 70%.(2015 70%) |
|
Manchester City Council have not notified any changes in the service charge cost. |
|
| 5 |
Related Party Transactions |
|
The company has paid a gross covenant under Gift Aid to the Mechanics Centre Museum of Labour and Trades' Union History Trust Limited - "The Trust" of £38,000 (2015 £20,500). Other related party transactions are shown in notes 2 and 4. It is also noted that Directors represent Trade Unions who use the Company's conference facilities. The charges made to the Trade Unions are on a commercial basis. The room rental turnover to Trade Unions amounts to £15,957 (2015 £25,367). The amount owed to the Trust due to recharges of insurance, rates, and water charged initially to The Trust amounts to £NIL (2015 £10,285). The amount owed by the Trust to the "Centre" is £7,584 (2015 (£NIL). |
|
Directors' and Secretary's remuneration - recharged from Mechanics Centre Museum of Labour and Trades' Union History Trust to the Centre amounts to £ NIL (2015 £NIL). |
|
| 6 |
Ultimate controlling party |
|
There is no ultimate controlling party. |
