R B Emerson Group Limited Group accounts (Group and Company)

R B EMERSON GROUP LIMITED - Company Information

true false false true true true false false false false false false true false false No description of principal activity 2016-04-01 Sage Accounts Production Advanced 2017 Update 4 - FRS 1,603,189 962,073 355,672 185,568 645,525 645,525 645,525 1 1 77,320 77,320 xbrli:pure xbrli:shares iso4217:GBP 04425301 2016-04-01 2017-03-31 04425301 2017-03-31 04425301 2015-04-01 2016-03-31 04425301 2016-03-31 04425301 bus:Consolidated 2016-04-01 2017-03-31 04425301 bus:Consolidated core:Subsidiary1 2016-04-01 2017-03-31 04425301 bus:Consolidated core:Subsidiary2 2016-04-01 2017-03-31 04425301 bus:RegisteredOffice 2016-04-01 2017-03-31 04425301 bus:OrdinaryShareClass1 2016-04-01 2017-03-31 04425301 bus:Consolidated bus:OrdinaryShareClass1 2016-04-01 2017-03-31 04425301 bus:LeadAgentIfApplicable 2016-04-01 2017-03-31 04425301 bus:Consolidated bus:LeadAgentIfApplicable 2016-04-01 2017-03-31 04425301 bus:Director1 2016-04-01 2017-03-31 04425301 bus:Director2 2016-04-01 2017-03-31 04425301 bus:Director4 2016-04-01 2017-03-31 04425301 bus:CompanySecretary1 2016-04-01 2017-03-31 04425301 bus:Consolidated 2017-03-31 04425301 bus:Consolidated core:WithinOneYear 2017-03-31 04425301 bus:Consolidated core:WithinOneYear 2016-03-31 04425301 core:WithinOneYear 2017-03-31 04425301 core:WithinOneYear 2016-03-31 04425301 bus:Consolidated core:LandBuildings 2016-03-31 04425301 bus:Consolidated core:PlantMachinery 2016-03-31 04425301 bus:Consolidated core:FurnitureFittings 2016-03-31 04425301 bus:Consolidated core:MotorVehicles 2016-03-31 04425301 bus:Consolidated 2016-03-31 04425301 bus:Consolidated core:LandBuildings 2017-03-31 04425301 bus:Consolidated core:PlantMachinery 2017-03-31 04425301 bus:Consolidated core:FurnitureFittings 2017-03-31 04425301 bus:Consolidated core:MotorVehicles 2017-03-31 04425301 bus:Consolidated core:PlantMachinery 2016-04-01 2017-03-31 04425301 bus:Consolidated core:FurnitureFittings 2016-04-01 2017-03-31 04425301 bus:Consolidated core:MotorVehicles 2016-04-01 2017-03-31 04425301 bus:Consolidated 2015-04-01 2016-03-31 04425301 bus:Consolidated 2016-03-31 04425301 bus:Consolidated core:UKTax 2016-04-01 2017-03-31 04425301 bus:Consolidated core:UKTax 2015-04-01 2016-03-31 04425301 bus:Consolidated core:RetainedEarningsAccumulatedLosses 2016-04-01 2017-03-31 04425301 bus:Consolidated core:RetainedEarningsAccumulatedLosses 2015-04-01 2016-03-31 04425301 core:RetainedEarningsAccumulatedLosses 2016-04-01 2017-03-31 04425301 core:RetainedEarningsAccumulatedLosses 2015-04-01 2016-03-31 04425301 bus:OrdinaryShareClass1 2015-04-01 2016-03-31 04425301 bus:Consolidated bus:OrdinaryShareClass1 2015-04-01 2016-03-31 04425301 bus:Consolidated core:RetainedEarningsAccumulatedLosses 2016-03-31 04425301 bus:Consolidated core:RetainedEarningsAccumulatedLosses 2015-03-31 04425301 bus:Consolidated core:RetainedEarningsAccumulatedLosses 2017-03-31 04425301 bus:Consolidated core:RetainedEarningsAccumulatedLosses 2016-03-31 04425301 core:RetainedEarningsAccumulatedLosses 2016-03-31 04425301 core:RetainedEarningsAccumulatedLosses 2015-03-31 04425301 core:RetainedEarningsAccumulatedLosses 2017-03-31 04425301 core:RetainedEarningsAccumulatedLosses 2016-03-31 04425301 bus:Consolidated core:ShareCapital 2017-03-31 04425301 bus:Consolidated core:ShareCapital 2016-03-31 04425301 core:ShareCapital 2017-03-31 04425301 core:ShareCapital 2016-03-31 04425301 core:BetweenOneFiveYears bus:Consolidated 2017-03-31 04425301 core:BetweenOneFiveYears bus:Consolidated 2016-03-31 04425301 bus:Consolidated core:MoreThanFiveYears 2016-03-31 04425301 core:CostValuation core:Non-currentFinancialInstruments 2017-03-31 04425301 core:Non-currentFinancialInstruments 2017-03-31 04425301 core:Non-currentFinancialInstruments 2016-03-31 04425301 bus:Consolidated core:PlantMachinery 2016-03-31 04425301 bus:Consolidated core:MotorVehicles 2016-03-31 04425301 core:AfterOneYear bus:Consolidated 2017-03-31 04425301 core:AfterOneYear bus:Consolidated 2016-03-31 04425301 bus:Consolidated bus:LeadAgentIfApplicable 2015-04-01 2016-03-31 04425301 bus:Consolidated bus:HighestPaidDirector 2016-04-01 2017-03-31 04425301 bus:Consolidated bus:HighestPaidDirector 2015-04-01 2016-03-31 04425301 bus:FRS102 2016-04-01 2017-03-31 04425301 bus:Audited 2016-04-01 2017-03-31 04425301 bus:FullAccounts 2016-04-01 2017-03-31 04425301 bus:LargeMedium-sizedCompaniesRegimeForAccounts 2016-04-01 2017-03-31 04425301 bus:PrivateLimitedCompanyLtd 2016-04-01 2017-03-31 04425301 bus:ConsolidatedGroupCompanyAccounts 2016-04-01 2017-03-31 04425301 bus:OrdinaryShareClass1 2017-03-31 04425301 bus:Consolidated bus:OrdinaryShareClass1 2017-03-31 04425301 bus:OrdinaryShareClass1 2016-03-31 04425301 bus:Consolidated bus:OrdinaryShareClass1 2016-03-31 04425301 core:LandBuildings core:ShortLeaseholdAssets bus:Consolidated 2016-04-01 2017-03-31 04425301 core:KeyManagementIndividualGroup1 bus:Consolidated 2016-04-01 2017-03-31 04425301 core:KeyManagementIndividualGroup1 2016-04-01 2017-03-31

COMPANY REGISTRATION NUMBER: 04425301

R B Emerson Group Limited

Financial Statements

31 March 2017

R B Emerson Group Limited

Financial Statements

Year ended 31 March 2017

Contents	Page

Officers and professional advisers	1

Strategic report	2

Directors' report	4

Independent auditor's report to the members	6

Consolidated statement of income and retained earnings	8

Company statement of income and retained earnings	9

Consolidated statement of financial position	10

Company statement of financial position	11

Consolidated statement of cash flows	12

Notes to the financial statements	13

R B Emerson Group Limited

Officers and Professional Advisers

The board of directors	M. F. Adams
	A. Casey
	M. H. Maddocks

Company secretary	A. Casey

Registered office	8a Coopers Way
	Temple Farm Industrial Estate
	Southend-on-Sea
	Essex
	SS2 5TE

Auditor	Edmund Carr LLP
	Chartered accountant & statutory auditor
	146 New London Road
	Chelmsford
	Essex
	CM2 0AW

Bankers	National Westminster
	132 High Street
	Southend on Sea
	Essex
	SS1 1BA

R B Emerson Group Limited

Strategic Report

Year ended 31 March 2017

This report presents a balanced and comprehensive review of the development and performance of the business during the year. The structure of the group continues not to be complex and this review reflects this. This review is consistent with the size of the business. R B Emerson Group Ltd (RBE Group) continues to manage and direct the group companies and also perform administrative functions. The Group's core business continues to be providing building service solutions to both public and private clients. These services are predominately electrical with the addition of air conditioning services and interior refurbishments. Turnover has increased significantly over the past 12 months Turnover 2017 - £19,364,481 2016 - £14,426,331 Following another years successful trading the group continues its policy to grow its reserves. Consolidated Reserves 2017 - £5,820,807 2016 - £4,573,290 Cash within the group continues to be positive. Consolidated Cash 2017 - £2,587,821 2016 - £1,897,591 The Group's policy to have a strong focus on training of apprentices continues across all group companies, with nine apprentices being taken on this year on our existing training programme and a further five on site specific contracts as part of our commitment to involve the community near our sites and train locally unemployed 16-25 year olds. This policy continues to ensure we have a highly skilled loyal workforce as well as reinforcing our Corporate Responsibility policy. The Directors believe the group is in a strong position to move forward in the next 12 months.

The financial risk management objectives of the directors are to minimise the financial risk of the group wherever possible. Whilst there is always an element of risk and uncertainty in our business sector we feel the current climate offers excellent opportunity to future develop the group which we continue to review and action on a regular basis. We feel that this review minimises any risks to an acceptable level.

This report was approved by the board of directors on 11 December 2017 and signed on behalf of the board by:

A. Casey

Company Secretary

Registered office:

8a Coopers Way

Temple Farm Industrial Estate

Southend-on-Sea

Essex

SS2 5TE

R B Emerson Group Limited

Directors' Report

Year ended 31 March 2017

The directors present their report and the financial statements of the group for the year ended 31 March 2017 .

Directors

The directors who served the company during the year were as follows:

M. F. Adams
A. Casey
M. H. Maddocks

Dividends

Particulars of recommended dividends are detailed in note 11 to the financial statements.

Disclosure of information in the strategic report

In accordance with Section 414C(11) of the Companies Act 2006, the company has included a Strategic Report within the financial statements, outlining the performance of the company along with a description of the principal risks and uncertainties facing the company.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the company and the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the group and the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the group and the company's auditor is aware of that information. The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

This report was approved by the board of directors on 11 December 2017 and signed on behalf of the board by:

A. Casey

Company Secretary

Registered office:

8a Coopers Way

Temple Farm Industrial Estate

Southend-on-Sea

Essex

SS2 5TE

R B Emerson Group Limited

Independent Auditor's Report to the Members of R B Emerson Group Limited

Year ended 31 March 2017

We have audited the financial statements of R B Emerson Group Limited for the year ended 31 March 2017 which comprise the consolidated statement of income and retained earnings, company statement of income and retained earnings, consolidated statement of financial position, company statement of financial position, consolidated statement of cash flows and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 ''The Financial Reporting Standard applicable in the UK and Republic of Ireland''.

This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of directors and auditor

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

A description of the scope of an audit of financial statements is provided on the Financial Reporting Council’s website at www.frc.org.uk/auditscopeukprivate.

Opinion on financial statements

In our opinion the financial statements: - give a true and fair view of the state of the group's and of the parent company's affairs as at 31 March 2017 and of the group's profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or - the parent company financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

S P Martin

(Senior Statutory Auditor)

For and on behalf of

Edmund Carr LLP

Chartered accountant & statutory auditor

146 New London Road

Chelmsford

Essex

CM2 0AW

18 December 2017

R B Emerson Group Limited

Consolidated Statement of Income and Retained Earnings

Year ended 31 March 2017

		2017	2016
Note		£	£
Turnover	4	19,364,481	14,426,331

Cost of sales	15,985,283	11,834,699
	-------------	-------------
Gross profit	3,379,198	2,591,632

Administrative expenses		1,370,083	1,379,604
		------------	------------
Operating profit	5	2,009,115	1,212,028

Other interest receivable and similar income	9	244	190
		------------	------------
Profit before taxation		2,009,359	1,212,218

Tax on profit	10	406,170	250,145
		------------	------------
Profit for the financial year and total comprehensive income		1,603,189	962,073
		------------	------------

Dividends paid and payable	11	( 355,672)	( 185,568)

Retained earnings at the start of the year	4,495,970	3,719,465
	------------	------------
Retained earnings at the end of the year	5,743,487	4,495,970
	------------	------------

All the activities of the group are from continuing operations.

R B Emerson Group Limited

Company Statement of Income and Retained Earnings

Year ended 31 March 2017

		2017	2016
Note		£	£
Profit for the financial year and total comprehensive income		654,586	189,307
Dividends paid and payable	11	( 355,672)	( 185,568)

Retained earnings at the start of the year	235,677	231,938
	---------	---------
Retained earnings at the end of the year	534,591	235,677
	---------	---------

R B Emerson Group Limited

Consolidated Statement of Financial Position

31 March 2017

	2017	2016
Note	£	£

Fixed assets

Tangible assets	12		65,058		44,501

Current assets

Stocks	15	28,868	28,868
Debtors	16	5,995,447	5,336,992
Cash at bank and in hand		2,587,821	1,898,695
		------------	------------
		8,612,136	7,264,555

Creditors: amounts falling due within one year	18	2,856,387		2,735,766
		------------		------------
Net current assets			5,755,749		4,528,789
			------------		------------
Total assets less current liabilities			5,820,807		4,573,290
			------------		------------
Net assets			5,820,807		4,573,290
			------------		------------

Capital and reserves

Called up share capital	20	77,320	77,320
Profit and loss account	21	5,743,487	4,495,970
		------------	------------
Shareholders funds		5,820,807	4,573,290
		------------	------------

These financial statements were approved by the board of directors and authorised for issue on 11 December 2017 , and are signed on behalf of the board by:

M. F. Adams	A. Casey
Director	Director

M. H. Maddocks
Director

Company registration number: 04425301

R B Emerson Group Limited

Company Statement of Financial Position

31 March 2017

	2017	2016
Note	£	£

Fixed assets

Investments	13		645,525		645,525

Current assets

Debtors	16	–	31
Cash at bank and in hand		996,461	317,935
		---------	---------
		996,461	317,966

Creditors: amounts falling due within one year	18	1,030,075		650,494
		------------		---------
Net current liabilities			33,614		332,528
			---------		---------
Total assets less current liabilities			611,911		312,997
			---------		---------
Net assets			611,911		312,997
			---------		---------

Capital and reserves

Called up share capital	20	77,320	77,320
Profit and loss account	21	534,591	235,677
		---------	---------
Shareholders funds		611,911	312,997
		---------	---------

The profit for the financial year of the parent company was £ 654,586 (2016: £ 189,307 ).

These financial statements were approved by the board of directors and authorised for issue on 11 December 2017 , and are signed on behalf of the board by:

M. F. Adams	A. Casey
Director	Director

M. H. Maddocks
Director

Company registration number: 04425301

R B Emerson Group Limited

Consolidated Statement of Cash Flows

Year ended 31 March 2017

	2017	2016
Note	£	£

Cash flows from operating activities

Profit for the financial year	1,603,189	962,073

Adjustments for:
Depreciation of tangible assets	25,920	19,866
Other interest receivable and similar income	( 244)	( 190)
Gains on disposal of tangible assets	( 25)	( 125)
Tax on profit	406,170	250,145
Accrued expenses/(income)	53,898	( 38,105)

Changes in:
Trade and other debtors	( 658,455)	( 32,461)
Trade and other creditors	164,709	( 606,036)
	------------	---------
Cash generated from operations	1,595,162	555,167

Interest received	244	190
Tax paid	( 503,052)	( 128,235)
	------------	---------
Net cash from operating activities	1,092,354	427,122
	------------	---------

Cash flows from investing activities

Purchase of tangible assets	( 46,478)	( 11,775)
Proceeds from sale of tangible assets	26	125
	------------	---------
Net cash used in investing activities	( 46,452)	( 11,650)
	------------	---------

Cash flows from financing activities

Dividends paid	( 355,672)	( 185,568)
	------------	---------
Net cash used in financing activities	( 355,672)	( 185,568)
	------------	---------

Net increase in cash and cash equivalents		690,230	229,904
Cash and cash equivalents at beginning of year		1,897,591	1,667,687
		------------	------------
Cash and cash equivalents at end of year	17	2,587,821	1,897,591
		------------	------------

R B Emerson Group Limited

Notes to the Financial Statements

Year ended 31 March 2017

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 8a Coopers Way, Temple Farm Industrial Estate, Southend-on-Sea, Essex, SS2 5TE.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, '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.

Subsidiary undertakings

R B Emerson Group Limited has two wholly owned subsidiary companies all of which are included in the consolidation.

R B Emerson Limited whose principal activity is that of an electrical contractor.

Essex Electric limited whose principal activity is that of electrical and refrigeration engineers.

Work in progress and long term contracts

Work in progress and long term contracts are dealt with in accordance with Financial Reporting Standard 102. Turnover attributable to each contract is assessed on the basis of the stage of completion of each individual contract. Where the recorded turnover is in excess of payments on account made to date, this excess is shown under debtors as 'amounts recoverable on contracts'. Where payments on account exceed recorded turnover, the excess is shown under creditors. Provision is made for any foreseeable losses at the balance sheet date.

Disclosure exemptions

The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102:

(a) Disclosures in respect of each class of share capital have not been presented.

(b) No cash flow statement has been presented for the company.

(d) No disclosure has been given for the aggregate remuneration of key management personnel.

Consolidation

The financial statements consolidate the financial statements of R B Emerson Group Limited and all of its subsidiary undertakings.

The results of subsidiaries acquired or disposed of during the year are included from or to the date that control passes.

The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

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. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.

Income 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.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

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:

Leasehold Property Improvements	-	Over the term of the lease
Plant and Machinery	-	10% - 25% straight line
Fixtures and Fittings	-	10% straight line
Motor Vehicles	-	25% straight line

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Turnover

Turnover arises from:

	2017	2016
	£	£
Rendering of services	19,364,481	14,426,331
	-------------	-------------

The whole of the turnover is attributable to the principal activity of the group wholly undertaken in the United Kingdom.

5. Operating profit

Operating profit or loss is stated after charging:

	2017	2016
	£	£
Depreciation of tangible assets	25,920	19,866
Gains on disposal of tangible assets	( 25)	( 125)
Impairment of trade debtors	–	37
	--------	--------

6. Auditor's remuneration

	2017	2016
	£	£
Fees payable for the audit of the financial statements	2,500	2,400
	-------	-------

Fees payable to the company's auditor and its associates for other services:

Other non-audit services	1,200	1,200
	-------	-------

7. Staff costs

The average number of persons employed by the group during the year, including the directors, amounted to:

	2017	2016
	No.	No.
Production staff	88	79
Administrative staff	5	6
Management staff	13	13
	----	----
	106	98
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2017	2016
	£	£
Wages and salaries	3,951,859	3,416,751
Social security costs	371,826	343,218
Other pension costs	137,877	77,140
	------------	------------
	4,461,562	3,837,109
	------------	------------

8. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2017	2016
	£	£
Remuneration	238,383	238,383
Company contributions to defined contribution pension plans	85,111	26,024
	---------	---------
	323,494	264,407
	---------	---------

The number of directors who accrued benefits under company pension plans was as follows:

	2017	2016
	No.	No.
Defined contribution plans	3	3
	----	----

Remuneration of the highest paid director in respect of qualifying services:

	2017	2016
	£	£
Aggregate remuneration	79,461	79,461
Company contributions to defined contribution pension plans	32,164	10,612
	---------	--------
	111,625	90,073
	---------	--------

9. Other interest receivable and similar income

	2017	2016
	£	£
Interest on cash and cash equivalents	244	190
	----	----

10. Tax on profit

Major components of tax expense

	2017		2016
	£		£

Current tax:

UK current tax expense	403,263	250,145
Adjustments in respect of prior periods	2,907	–
	---------	---------
Total current tax	406,170	250,145
	---------	---------
Tax on profit	406,170	250,145
	---------	---------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is higher than (2016: higher than) the standard rate of corporation tax in the UK of 20 % (2016: 20 %).

	2017	2016
	£	£
Profit on ordinary activities before taxation	2,009,359	1,212,218
	------------	------------
Profit on ordinary activities by rate of tax	401,872	242,390
Adjustment to tax charge in respect of prior periods	2,907	–
Effect of expenses not deductible for tax purposes	5,995	6,665
Depreciation in excess of capital allowances	( 4,604)	1,090
	------------	------------
Tax on profit	406,170	250,145
	------------	------------

11. Dividends

Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):

	2017	2016
	£	£
Equity dividends on ordinary shares	355,672	185,568
	---------	---------

12. Tangible assets

Group	Land and buildings	Plant and machinery	Fixtures and fittings	Motor vehicles	Total
	£	£	£	£	£
Cost
At 1 April 2016	159,831	28,310	16,193	179,613	383,947
Additions	–	–	–	46,478	46,478
Disposals	–	–	–	( 7,460)	( 7,460)
	---------	--------	--------	---------	---------
At 31 March 2017	159,831	28,310	16,193	218,631	422,965
	---------	--------	--------	---------	---------
Depreciation
At 1 April 2016	159,831	15,068	16,193	148,354	339,446
Charge for the year	–	2,236	–	23,684	25,920
Disposals	–	–	–	( 7,459)	( 7,459)
	---------	--------	--------	---------	---------
At 31 March 2017	159,831	17,304	16,193	164,579	357,907
	---------	--------	--------	---------	---------
Carrying amount
At 31 March 2017	–	11,006	–	54,052	65,058
	---------	--------	--------	---------	---------
At 31 March 2016	–	13,242	–	31,259	44,501
	---------	--------	--------	---------	---------

The company has no tangible assets.

13. Investments

The group has no investments.

Company	Shares in group undertakings
	£
Cost
At 1 April 2016 and 31 March 2017	645,525
	---------
Impairment
At 1 April 2016 and 31 March 2017	–
	---------

Carrying amount
At 1 April 2016 and 31 March 2017	645,525
	---------
At 31 March 2016	645,525
	---------

Subsidiaries, associates and other investments

Details of the investments in which the parent company has an interest of 20% or more are as follows:

	Class of share	Percentage of shares held
Subsidiary undertakings
R B Emerson Limited	Ordinary	100
Essex Electric Limited	Ordinary	100

14. Investments

The group has no investments.

15. Stocks

	Group		Company
	2017	2016	2017	2016
	£	£	£	£
Raw materials and consumables	28,868	28,868	–	–
	--------	--------	----	----

16. Debtors

	Group		Company
	2017	2016	2017	2016
	£	£	£	£
Trade debtors	5,482,669	4,887,454	–	–
Prepayments and accrued income	51,306	53,143	–	–
Amounts recoverable on contracts	130,702	134,483	–	–
Other debtors	330,770	261,912	–	31
	------------	------------	----	----
	5,995,447	5,336,992	–	31
	------------	------------	----	----

The debtors above include the following amounts falling due after more than one year:

	Group		Company
	2017	2016	2017	2016
	£	£	£	£
Trade debtors	927,720	382,276	–	–
	---------	---------	----	----

17. Cash and cash equivalents

Cash and cash equivalents comprise the following:

	2017	2016
	£	£
Cash at bank and in hand	2,587,821	1,898,695
Bank overdrafts	–	( 1,104)
	------------	------------
	2,587,821	1,897,591
	------------	------------

18. Creditors: amounts falling due within one year

	Group		Company
	2017	2016	2017	2016
	£	£	£	£
Bank loans and overdrafts	–	1,104	–	–
Trade creditors	2,444,456	2,308,557	–	2,034
Amounts owed to group undertakings	–	–	977,641	588,400
Accruals and deferred income	112,249	58,351	2,700	2,844
Corporation tax	153,263	250,145	39,373	47,327
Social security and other taxes	146,419	117,609	10,361	9,889
	------------	------------	------------	---------
	2,856,387	2,735,766	1,030,075	650,494
	------------	------------	------------	---------

19. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 50,564 (2016: £ 48,180 ).

20. Called up share capital

Authorised share capital

	2017		2016
	No.	£	No.	£
Ordinary shares of £ 1 each	100,000	100,000	100,000	100,000
	---------	---------	---------	---------

Issued, called up and fully paid

	2017		2016
	No.	£	No.	£
Ordinary shares of £ 1 each	77,320	77,320	77,320	77,320
	--------	--------	--------	--------

21. Reserves

Profit and loss account - This reserve records retained earnings and accumulated losses.

22. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	Group		Company
	2017	2016	2017	2016
	£	£	£	£
Not later than 1 year	35,097	39,943	–	–
Later than 1 year and not later than 5 years	7,356	7,391	–	–
Later than 5 years	–	9,994	–	–
	--------	--------	----	----
	42,453	37,340	–	–
	--------	--------	----	----

23. Contingencies

R B Emerson Group Limited has made an unlimited guarantee to National Westminster Bank PLC in respect of the borrowings of Essex Electric Limited and R B Emerson Limited, all fully owned subsidiaries. At the year end there was no indebtedness.

24. Related party transactions

Group

During the year sales of £4,239 (2016: £3,939) and purchases of £29,800 (2016: £24,720) were made to/from the directors .

Company

During the year dividends of £345,000 (2016: £180,000) were paid to the directors .