NORTHERN_CONSTRUCTION_CHE - Accounts
NORTHERN_CONSTRUCTION_CHE - Accounts
Company Registration No. 04151797 (England and Wales)
DIRECTORS' REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2016
COMPANY INFORMATION
Directors
Secretary
Company number
Registered office
Accountants
Business address
5E Glover Industrial Estate
Washington
Tyne & Wear
NE37 3ES
CONTENTS
Page
Directors' report
1
Accountants' report
2
Profit and loss account
3
Balance sheet
4 - 5
Notes to the financial statements
6 - 11
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2016
- 1 -
The directors present their report and financial statements for the year ended 31 August 2016.
Directors
The following directors have held office since 1 September 2015:
This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.
On behalf of the board
Director
CHARTERED ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF NORTHERN CONSTRUCTION CHEMICALS (NORTH EAST) LIMITED FOR THE YEAR ENDED 31 AUGUST 2016
- 2 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Northern Construction Chemicals (North East) Limited for the year ended 31 August 2016 set out on pages 3 to 11 from the company's accounting records and from information and explanations you have given us.
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 http://www.icaew.com/en/members/regulations-standards-and-guidance/.
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 http://www.icaew.com/en/members/regulations-standards-and-guidance/.
This report is made solely to the Board of Directors of Northern Construction Chemicals (North East) Limited, as a body, in accordance with the terms of our engagement letter dated 12 June 2012. Our work has been undertaken solely to prepare for your approval the financial statements of Northern Construction Chemicals (North East) Limited and state those matters that we have agreed to state to the Board of Directors of Northern Construction Chemicals (North East) Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Northern Construction Chemicals (North East) Limited and its Board of Directors as a body, for our work or for this report.
It is your duty to ensure that Northern Construction Chemicals (North East) 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 Northern Construction Chemicals (North East) Limited. You consider that Northern Construction Chemicals (North East) 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 Northern Construction Chemicals (North East) 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.
R P Smith & Co
Chartered Accountants
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2016
- 3 -
2016
2015
Notes
£
£
Turnover
Cost of sales
(322,524 )
(364,604 )
Gross profit
Administrative expenses
(95,761 )
(84,638 )
Other operating income
Operating profit
2
Investment income
3
Profit on ordinary activities before taxation
Tax on profit on ordinary activities
4
(3,004 )
(8,969 )
Profit for the year
13
BALANCE SHEET
AS AT
31 AUGUST 2016
- 4 -
2016
2015
Notes
£
£
£
£
Fixed assets
Tangible assets
6
Investments
7
Current assets
Stocks
Debtors
8
Cash at bank and in hand
Creditors: amounts falling due within one year
9
(52,579 )
(77,047 )
Net current assets
Total assets less current liabilities
Provisions for liabilities
10
(222 )
(375 )
Capital and reserves
Called up share capital
12
Profit and loss account
13
Shareholders' funds
BALANCE SHEET (CONTINUED)
AS AT
31 AUGUST 2016
- 5 -
Directors' responsibilities:
-
-
Approved by the Board for issue on 9 May 2017
Director
Director
Company Registration No. 04151797
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2016
- 6 -
1
Accounting policies
1.1
Accounting convention
1.2
Compliance with accounting standards
The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied consistently (except as otherwise stated).
1.3
Turnover
1.4
Tangible fixed assets and depreciation
Plant and machinery
Computer equipment
Motor vehicles
1.5
Leasing
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.
1.6
Investments
Fixed asset investments are stated at cost less provision for diminution in value.
1.7
Stock
Stock is valued at the lower of cost and net realisable value.
1.8
Deferred taxation
Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
2
Operating profit
2016
2015
£
£
Operating profit is stated after charging:
Depreciation of tangible assets
Directors' remuneration
3
Investment income
2016
2015
£
£
Income from fixed asset investments
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2016
- 7 -
4
Taxation
2016
2015
£
£
Domestic current year tax
U.K. corporation tax
Total current tax
Deferred tax
Deferred tax charge credit current year
(153)
197
5
Dividends
2016
2015
£
£
Ordinary interim paid
108,300
93,800
6
Tangible fixed assets
Plant and machinery
Motor vehicles
Total
£
£
£
Cost
At 1 September 2015 & at 31 August 2016
Depreciation
At 1 September 2015
Charge for the year
At 31 August 2016
Net book value
At 31 August 2016
At 31 August 2015
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2016
- 8 -
7
Fixed asset investments
Shares in group undertakings and participating interests
£
Cost
At 1 September 2015 & at 31 August 2016
300
Net book value
At 31 August 2016
At 31 August 2015
8
Debtors
2016
2015
£
£
Trade debtors
Other debtors
-
9
Creditors: amounts falling due within one year
2016
2015
£
£
Bank loans and overdrafts
-
Trade creditors
Taxation and social security
Other creditors
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2016
- 9 -
10
Provisions for liabilities
Deferred tax liability
£
Balance at 1 September 2015
375
Profit and loss account
(153 )
Balance at 31 August 2016
The deferred tax liability is made up as follows:
2016
2015
£
£
Accelerated capital allowances
11
Pension costs
Defined contribution
2016
2015
£
£
Contributions payable by the company for the year
-
12
Share capital
2016
2015
£
£
Allotted, called up and fully paid
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2016
- 10 -
13
Statement of movements on profit and loss account
Profit
and loss
account
and loss
account
£
Balance at 1 September 2015
Profit for the year
Dividends paid
(108,300 )
Balance at 31 August 2016
14
Financial commitments
At 31 August 2016 the company was committed to making the following payments under non-cancellable operating leases in the year to 31 August 2017:
2016
2015
£
£
Operating leases which expire:
Within one year
15
Related party relationships and transactions
The following directors were paid dividends during the year as outlined in the table below:
2016
2015
£
£
A E Harvey
58,950
53,700
D C Mackay
49,350
40,100
108,300
93,800
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2016
15
Related party relationships and transactions
(Continued)
- 11 -
The company is controlled by the directors.
The directors of Northern Construction Chemicals (North East) Limited are also directors of NCC Scotland Limited. During the year the company traded with NCC Scotland Limited at arms length. At 31 August 2016 £1,591 was due from NCC Scotland Limited and £1,427 was due to NCC Scotland Limited. These balances are included within trade debtors and trade creditors respectively. The company also received £2,228 in respect of administrative costs recharged to NCC Scotland Limited.
Mr D C Mackay, a director of Northern Construction Chemicals (North East) Limited is also a director of Northern Construction Chemicals (North West) Limited. During the year the company traded with Northern Construction Chemicals (North West ) Limited at arms length. At 31 August 2016 £2,274 was due from Northern Construction Chemicals (North West) Limited and £6,434 was due to Northern Construction Chemicals (North West) Limited. These balances are included within trade debtors and trade creditors respectively. Management charges of £12,000 were paid to Northern Construction Chemicals (North West) Limited during the year.
Northern Construction Chemicals (North East) Limited holds 75% of the share capital in NCC Scotland Limited, a company registered in England.