Mando Group Limited - Accounts to registrar - small 17.1.1

REGISTERED NUMBER: 04391789 (England and Wales)

Unaudited Financial Statements

for the Year Ended 31 March 2017

for

Mando Group Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

Chartered Accountants' Report

14

DIRECTORS:

I D G Finch

D M Prior

J Seal

M Simpson

SECRETARY:

D M Prior

REGISTERED OFFICE:

5 St. Paul's Square

Liverpool

L3 9SJ

REGISTERED NUMBER:

04391789 (England and Wales)

ACCOUNTANTS:

Jonathan Ford & Co Limited

Chartered Accountants

Maxwell House

Liverpool Innovation Park

Liverpool

Merseyside

L7 9NJ

FIXED ASSETS

Tangible assets

4

406,295

22,279

CURRENT ASSETS

Debtors

5

4,541,105

3,208,813

Cash at bank and in hand

310,800

390,190

4,851,905

3,599,003

CREDITORS

Amounts falling due within one year

6

3,991,984

2,619,053

NET CURRENT ASSETS

859,921

979,950

TOTAL ASSETS LESS CURRENT LIABILITIES

1,266,216

1,002,229

CREDITORS

Amounts falling due after more than one year

7

(300,128

)

(77,370

)

PROVISIONS FOR LIABILITIES

(44,550

)

(6,401

)

NET ASSETS

921,538

918,458

CAPITAL AND RESERVES

Called up share capital

100

100

Share premium

149,985

149,985

Retained earnings

771,453

768,373

SHAREHOLDERS' FUNDS

921,538

918,458

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2017.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2017 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 of Part 15 of the Companies Act 2006 relating to small companies.

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 on 14 June 2017 and were signed on its behalf by:

D M Prior - Director

1.	STATUTORY INFORMATION

Mando Group 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 the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates

The company makes estimates and assumptions concerning the future. The resulting

accounting estimates will, by definition, seldom equal the related actual results. The estimates

and assumptions that have a significant risk of causing a material adjustment to the carrying

amounts of assets and liabilities within the next financial year are addressed below.

(i) Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated

useful economic lives and residual values of the assets. The useful economic lives and

residual values are re-assessed annually. They are amended when necessary to reflect current

estimates, based on technological advancement, future investments, economic utilisation and

the physical condition of the assets.

(ii) Deferred tax provisioning

Deferred tax is recognised on all timing differences at the reporting date. The company's

timing differences predominantly arise on the differing tax and accounting carrying values of

tangible assets. Judgement is exercised by management in determining the useful economic

lives and residual values of tangible assets which is relevant in calculating the value of

deferred tax liabilities or assets.

(iii) Impairment of debtors

The company makes an estimate of the recoverable value of trade and other debtors. When

assessing impairment of trade and other debtors, management considers factors including the

current credit rating of the debtor, the ageing profile of debtors and historical experience.

Turnover

Turnover comprises revenue recognised by the company in respect of goods and services

supplied during the period, exclusive of Value Added Tax and trade discounts.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Improvements to property

-

20% on cost

Fixtures and fittings

-

20% on cost

Computer equipment

-

33% on cost

Depreciation in all cases is calculated on a daily basis.

Financial instruments

(i) Financial assets

Basic financial assets, including trade and other receivables and cash and bank balances, are

initially recognised at transaction price, unless the arrangement constitutes a financing

transaction, where the transaction is measured at the present value of the future receipts

discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed

for objective evidence of impairment. If an asset is impaired the impairment loss is the

difference between the carrying amount and the present value of the estimated cash flows

discounted at the asset's original effective interest rate. The impairment loss is recognised in

profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the

impairment was recognised the impairment is reversed. The reversal is such that the current

carrying amount does not exceed what the carrying amount would have been had the

impairment not previously been recognised. The impairment reversal is recognised in profit or

loss.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the

asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the

asset are transferred to another party or (c) control of the asset has been transferred to another

party who has the practical ability to unilaterally sell the asset to an unrelated third party

without imposing additional restrictions.

(ii) Financial liabilities

Basic financial liabilities, including trade and other payables and bank loans are initially

recognised at transaction price, unless the arrangement constitutes a financing transaction,

where the debt instrument is measured at the present value of the future receipts discounted at

a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate

method.

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan

to the extent that it is probable that some or all of the facility will be drawn down. In this case,

the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is

probable that some or all of the facility will be drawn down, the fee is capitalised as a

pre-payment for liquidity services and amortised over the period of the facility to which it

relates.

Trade payables are obligations to pay for goods or services that have been acquired in the

ordinary course of business from suppliers. Accounts payable are classified as current

liabilities if payment is due within one year or less. If not, they are presented as non-current

liabilities. Trade payables are recognised initially at transaction price and subsequently

measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the

contractual obligation is discharged, cancelled or expires.

Current tax

Current tax is the amount of income tax payable in respect of taxable profit for the year or

prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or

substantively enacted by the period end.

Deferred tax

Deferred tax is recognised on all timing differences at the reporting date except for certain

exceptions. Unrelieved tax losses and other deferred tax assets are only recognised when it is

probable that they will be recovered against the reversal of deferred tax liabilities or other

future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively

enacted and that are expected to apply to the reversal of the timing difference.

Research and development

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

Development expenditure on individual projects is only carried forward where the future

recoverability of the expenditure can be reasonably regarded as assured. In such

circumstances the expenditure carried forward is amortised on an appropriate basis. Where

the future recoverability of development expenditure cannot be reasonably regarded as

assured it is charged to the profit and loss account as incurred.

Deferred development expenditure is reviewed annually, and where future benefits are

deemed to have ceased or to be in doubt, the balance of any related development expenditure

is written off to the profit and loss account.

Leasing

(i) Operating leases

Leases that do not transfer all the risks and rewards of ownership are classified as operating

leases. Payments under operating leases are charged to the profit and loss account on a

straight line basis over the period of the lease.

(ii) Hire purchase and other finance leases

Leases of assets that transfer substantially all the risks and rewards incidental to ownership are

classified as finance leases. Such leases are capitalised at commencement of the lease at fair

value or, if lower, the present value of the minimum lease payments calculated using the

interest rate implicit in the lease.

Capitalised finance lease assets are depreciated over the shorter of the lease term and the

estimated useful life of the asset and are annually assessed for impairment.

The capital element of finance leases is recorded as a liability at commencement of the lease.

Lease payments are apportioned between capital repayment and finance charge using the

effective interest rate method.

The liability is subsequently carried at amortised cost, using the effective interest rate method.

(iii) Operating lease incentives

Benefits received and receivable as an incentive to sign an operating lease are recognised on a

straight line basis over the entire lease term.

Pensions

The company contributes to personal pension plans and the pension charge represents the

amounts payable by the company during the year.

Long-term contracts

Profit on long-term contracts is taken as the work is carried out if the final outcome can be

assessed with reasonable certainty. The profit included is calculated on a prudent basis to

reflect the proportion of the work carried out at the year end, by recording turnover and

related costs as contract activity progresses.

Turnover is calculated as that proportion of total contract value which costs incurred to date

bear to total expected costs for that contract.

Revenues derived from variations on contracts are recognised only when they have been

accepted by the customer. Full provision is made for losses on all contracts in the year in

which they are first foreseen.

Employee benefits

Short term benefits, including holiday pay and other non-monetary benefits, are recognised as

an expense in the period in which the service is received.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 51 .

4.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

and

Computer

property

fittings

equipment

Totals

£

£

£

£

COST

At 1 April 2016

-

3,193

349,326

352,519

Additions

155,117

202,192

71,942

429,251

At 31 March 2017

155,117

205,385

421,268

781,770

DEPRECIATION

At 1 April 2016

-

263

329,977

330,240

Charge for year

13,942

14,594

16,699

45,235

At 31 March 2017

13,942

14,857

346,676

375,475

NET BOOK VALUE

At 31 March 2017

141,175

190,528

74,592

406,295

At 31 March 2016

-

2,930

19,349

22,279

Fixed assets, included in the above, which are held under hire purchase contracts are as

follows:

Improvements

to

property

£

COST

Additions

155,117

At 31 March 2017

155,117

DEPRECIATION

Charge for year

13,942

At 31 March 2017

13,942

NET BOOK VALUE

At 31 March 2017

141,175

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.17

31.3.16

£

£

Trade debtors

830,009

838,362

Amounts owed by parent company

555,838

658,755

Other debtors

3,155,258

1,711,696

4,541,105

3,208,813

The main component of other debtors at the balance sheet date is work in progress amounting

to £2,395,168 (2016 - £1,519,602).

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.17

31.3.16

£

£

Bank loans and overdrafts

30,450

30,450

Hire purchase contracts (see note 8)

76,629

-

Trade creditors

177,389

154,546

Taxation and social security

294,505

272,582

Other creditors

3,413,011

2,161,475

3,991,984

2,619,053

The main component of other creditors at the balance sheet date is deferred income amounting

to £3,271,400 (2016 - £2,068,646).

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.3.17

31.3.16

£

£

Bank loans

46,182

77,370

Hire purchase contracts (see note 8)

253,946

-

300,128

77,370

8.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase

contracts

31.3.17

31.3.16

£

£

Net obligations repayable:

Within one year

76,629

-

Between one and five years

253,946

-

330,575

-

Non-cancellable

operating leases

31.3.17

31.3.16

£

£

Within one year

18,124

42,307

Between one and five years

238,347

8,997

256,471

51,304

The company entered into a leasing arrangement after the balance sheet date with the

minimum lease payments falling due within 12 months and between 1 and 5 years being

£3,775 and £5,285 respectively.

9.	SECURED DEBTS

The following secured debts are included within creditors:

31.3.17

31.3.16

£

£

Bank loans

76,632

107,820

The bank loan is secured by way of fixed charge over the company's land, plant and

machinery, rental income, securities, insurance policies, goodwill, uncalled share capital,

intellectual property and trade debts. A floating charge covers all company assets not

effectively charged by the fixed charge.

10.	ULTIMATE CONTROLLING PARTY

The controlling party is I D G Finch.

11.	TRANSITION TO FRS 102

This is the first year that the company has presented its financial statements under Financial

Reporting Standard 102 (FRS 102) issued by the Financial Reporting Council. The previous

financial statements, for the year ended 31 March 2016, were prepared under previous UK

generally accepted accounting principles (GAAP). The transition date to FRS 102 is therefore

1 April 2015.

Adopting FRS 102 has meant that the accounting policies and disclosures detailed below have

changed to comply with the new standard.

None of the changes in accounting policy detailed below has impacted on profit in the

Statement of Income and Retained Earnings or on the Statement of Financial Position.

Consequently, no reconciliation between old UK GAAP and FRS 102 has been presented.

(i) Operating lease incentives

Under previous GAAP, incentives received as a result of the inception of operating leases

were recognised over the period from inception to the first point at which rent was adjusted to

market rate. Such incentives are now recognised over the entire lease term.

(ii) Employment benefits

Under previous GAAP, the company did not make adjustments for short-term benefits earned,

namely paid holiday accruals and prepayments, but not provided by the year end. Under FRS

102 the company is required to accrue and prepay for such amounts as necessary.

The adjustment in respect of paid holidays in the current and prior periods was immaterial and

so no adjustment has been made by the company.

(iii) Capital and other commitments

Under FRS 102, the company has disclosed the total future minimum lease payments rather

than the payments committed to be made during the next financial year as required under

previous UK GAAP. The comparative disclosure have been restated accordingly.

(iv) Computer software

Under FRS 102, computer software is required to be classified within intangible rather than

tangible assets. Software costs within tangible assets were either immaterial if purchased as a

standalone item or not reliably estimable if incurred in a single purchase along with associated

hardware. No adjustment has therefore been made.

The following reproduces the text of the report prepared for the directors and members 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 Mando Group Limited for the year ended 31 March 2017 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 Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of Mando Group Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Mando Group Limited and state those matters that we have agreed to state to the Board of Directors of Mando Group Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Mando Group Limited Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Mando Group 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 Mando Group Limited. You consider that Mando Group 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 Mando Group 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.

Jonathan Ford & Co Limited

Chartered Accountants

Maxwell House

Liverpool Innovation Park

Liverpool

Merseyside

L7 9NJ

Date: .............................................