The Mortar and Screed Company Limited Company Accounts

THE MORTAR AND SCREED COMPANY LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 08873886

The Mortar and Screed Company Limited

Unaudited Financial Statements

31 December 2016

CBSL ACCOUNTANTS LIMITED

Chartered accountant

Rowan House North

1 The Professional Quarter

Shrewsbury Business Park

Shrewsbury

Shropshire

SY2 6LG

The Mortar and Screed Company Limited

Financial Statements

Year ended 31 December 2016

Contents	Page

Officers and professional advisers	1

Chartered accountant's report to the board of directors on the preparation of the unaudited statutory financial statements	2

Statement of financial position	3

Notes to the financial statements	5

The Mortar and Screed Company Limited

Officers and Professional Advisers

The board of directors	R M Parton
	P Padfield

Registered office	The Oaklands
	Station Road
	Admaston
	Telford
	Shropshire
	TF5 0AN

Accountants	CBSL ACCOUNTANTS LIMITED
	Chartered accountant
	Rowan House North
	1 The Professional Quarter
	Shrewsbury Business Park
	Shrewsbury
	Shropshire
	SY2 6LG

The Mortar and Screed Company Limited

Chartered Accountant's Report to the Board of Directors on the Preparation of the Unaudited Statutory Financial Statements of The Mortar and Screed Company Limited

Year ended 31 December 2016

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of The Mortar and Screed Company Limited for the year ended 31 December 2016, which comprise the statement of financial position 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 at www.icaew.com/en/membership/regulations-standards-and-guidance. This report is made solely to the Board of Directors of The Mortar and Screed Company Limited, as a body, in accordance with the terms of our engagement letter dated 12 September 2017. Our work has been undertaken solely to prepare for your approval the financial statements of The Mortar and Screed Company Limited and state those matters that we have agreed to state you, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF as detailed at www.icaew.com/compilation. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than The Mortar and Screed Company Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that The Mortar and Screed Company 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 The Mortar and Screed Company Limited. You consider that The Mortar and Screed Company 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 The Mortar and Screed Company 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.

CBSL ACCOUNTANTS LIMITED Chartered accountant

Rowan House North 1 The Professional Quarter Shrewsbury Business Park Shrewsbury Shropshire SY2 6LG

12 September 2017

The Mortar and Screed Company Limited

Statement of Financial Position

31 December 2016

	2016	2015
Note	£	£

Fixed assets

Tangible assets	6	1,640,669	648,984

Current assets

Debtors	7	882,059	546,318
Cash at bank and in hand		143,120	136,598
		------------	---------
		1,025,179	682,916

Creditors: amounts falling due within one year	8	1,746,377	1,040,438
		------------	------------
Net current liabilities		721,198	357,522
		------------	---------
Total assets less current liabilities		919,471	291,462

Creditors: amounts falling due after more than one year	9	364,560	134,427

Provisions	99,200	41,500
	---------	---------
Net assets	455,711	115,535
	---------	---------

Capital and reserves

Called up share capital	12	240	240
Profit and loss account		455,471	115,295
		---------	---------
Members funds		455,711	115,535
		---------	---------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.

For the year ending 31 December 2016 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

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

The Mortar and Screed Company Limited

Statement of Financial Position (continued)

31 December 2016

These financial statements were approved by the board of directors and authorised for issue on 12 September 2017 , and are signed on behalf of the board by:

R M Parton

Director

Company registration number: 08873886

The Mortar and Screed Company Limited

Notes to the Financial Statements

Year ended 31 December 2016

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is The Oaklands, Station Road, Admaston, Telford, Shropshire, TF5 0AN.

2. Statement of compliance

These financial statements have been prepared in compliance with the provisions of FRS 102 Section 1A, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Transition to FRS 102

The entity transitioned from previous UK GAAP to FRS 102 as at 1 January 2015. Details of how FRS 102 has affected the reported financial position and financial performance is given in note 15.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Corporation tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that 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 by the reporting date that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Plant and machinery	-	15% straight line
Fixtures and fittings	-	33% straight line
Motor lorries	-	15% straight line
Motor cars	-	15% straight line

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

4. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to 21 (2015: 9).

5. Profit before taxation

Profit before taxation is stated after charging:

	2016	2015
	£	£
Depreciation of tangible assets	145,399	91,663
	---------	--------

6. Tangible assets

	Concrete batching plant	Plant and machinery	Fixtures and fittings	Motor lorries	Motor cars	Total
	£	£	£	£	£	£
Cost
At 1 Jan 2016	–	326,148	–	434,893	–	761,041
Additions	324,986	120,290	4,430	681,220	61,198	1,192,124
Disposals	–	–	–	( 70,667)	–	( 70,667)
	---------	---------	-------	------------	--------	------------
At 31 Dec 2016	324,986	446,438	4,430	1,045,446	61,198	1,882,498
	---------	---------	-------	------------	--------	------------
Depreciation
At 1 Jan 2016	–	51,939	–	60,118	–	112,057
Charge for the year	–	59,441	206	84,580	1,172	145,399
Disposals	–	–	–	( 15,627)	–	( 15,627)
	---------	---------	-------	------------	--------	------------
At 31 Dec 2016	–	111,380	206	129,071	1,172	241,829
	---------	---------	-------	------------	--------	------------
Carrying amount
At 31 Dec 2016	324,986	335,058	4,224	916,375	60,026	1,640,669
	---------	---------	-------	------------	--------	------------
At 31 Dec 2015	–	274,209	–	374,775	–	648,984
	---------	---------	-------	------------	--------	------------

Finance leases and hire purchase contracts

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:

	Motor lorries
	£
At 31 December 2016	823,101
	---------
At 31 December 2015	285,981
	---------

7. Debtors

	2016	2015
	£	£
Trade debtors	702,228	438,869
Other debtors	179,831	107,449
	---------	---------
	882,059	546,318
	---------	---------

8. Creditors: amounts falling due within one year

	2016	2015
	£	£
Trade creditors	301,893	12,889
Corporation tax	25,735	–
Social security and other taxes	18,735	64,768
Other creditors	1,400,014	962,781
	------------	------------
	1,746,377	1,040,438
	------------	------------

9. Creditors: amounts falling due after more than one year

	2016	2015
	£	£
Other creditors	364,560	134,427
	---------	---------

10. Finance leases and hire purchase contracts

The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

	2016	2015
	£	£
Not later than 1 year	289,580	109,245
Later than 1 year and not later than 5 years	364,560	134,427
	---------	---------
	654,140	243,672
	---------	---------

11. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2016	2015
	£	£
Included in provisions	99,200	41,500
	--------	--------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2016	2015
	£	£
Accelerated capital allowances	99,200	41,500
	--------	--------

12. Called up share capital

Issued, called up and fully paid

	2016		2015
	No.	£	No.	£
Ordinary shares of £ 1 each	240	240	240	240
	----	----	----	----

13. Directors' advances, credits and guarantees

At the year end the directors loan account was overdrawn by £70,328 (2015 - £59,686).

14. Related party transactions

The following transactions took place during the year with related parties :-

	2016	2015
	£	£
Materials purchased from Staffordshire Sand and Gravel Company Limited	637,782	467,537
Loan interest paid to Salop Sand and Gravel Supply Company Limited	–	51,742

Monies due (to)/from related parties at the year end were as follows :-

	2016	2015
	£	£
Staffordshire Sand and Gravel Company Limited	( 29,349)	40,500
Wildmoor Quarry Products Limited	( 75,624)	4,136
Salop Sand and Gravel Supply Company Limited	( 977,368)	( 821,630)
S S G Haulage Limited	( 6,031)	( 23,280)
Shropshire Sand and Gravel Company Limited	( 2,416)	–

R M Parton has an interest in all of the above companies.

15. Transition to FRS 102

These are the first financial statements that comply with FRS 102. The company transitioned to FRS 102 on 1 January 2015.

No transitional adjustments were required in equity or profit or loss for the year.