M. & M. Skip Hire Limited - Limited company accounts 17.3

REGISTERED NUMBER: 02693780 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 March 2017

for

M. & M. SKIP HIRE LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

7

Other Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

A Pharaon

R D J Fluckiger

B Smith

SECRETARY:

A Pharaon

REGISTERED OFFICE:

9 Worton Park

Cassington

Witney

Oxfordshire

OX29 4SX

REGISTERED NUMBER:

02693780 (England and Wales)

SENIOR STATUTORY AUDITOR:

Ellen O'Donnell

AUDITORS:

Camerons Accountancy Consultants Limited

Statutory Auditor

Chartered Accountants

9 Worton Park

Cassington

Witney

Oxfordshire

OX29 4SX

The directors present their strategic report for the year ended 31 March 2017.

REVIEW OF BUSINESS

During the year, M & M Skip Hire Limited continued its investment in plant & machinery and

this has led to significant increases in turnover and profit margins. Turnover has increased by

20.6%, which in turn has led to a 29.6% increase in gross profit.

The directors consider that this capital investment is key to the company's growth as its

investment in the team.

Since the year end, the company has entered into an agreement to purchase new processing

plant, which will allow it to continue its growth in profitability.

ON BEHALF OF THE BOARD:

R D J Fluckiger - Director

21 December 2017

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

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2017.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2016 to

the date of this report.

A Pharaon

R D J Fluckiger

Other changes in directors holding office are as follows:

B Smith - appointed 21 October 2016

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors

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 company and of the profit or loss of the company for that period. In preparing

these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section

418 of the Companies Act 2006) of which the company's auditors are unaware, and each

director has taken all the steps that he ought to have taken as a director in order to make

himself aware of any relevant audit information and to establish that the company's auditors

are aware of that information.

AUDITORS

The auditors, Camerons Accountancy Consultants Limited, will be proposed for re-appointment

at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

R D J Fluckiger - Director

21 December 2017

We have audited the financial statements of M. & M. Skip Hire Limited for the year ended

31 March 2017 on pages seven to twenty one. The financial reporting framework that has been

applied in their preparation is applicable law and United Kingdom Accounting Standards

(United Kingdom Generally Accepted Accounting Practice), including Financial Reporting

Standard 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 a Report of

the Auditors 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 auditors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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

An audit involves obtaining evidence about the amounts and disclosures in the financial

statements sufficient to give reasonable assurance that the financial statements are free from

material misstatement, whether caused by fraud or error. This includes an assessment of:

whether the accounting policies are appropriate to the company's circumstances and have

been consistently applied and adequately disclosed; the reasonableness of significant

accounting estimates made by the directors; and the overall presentation of the financial

statements. In addition, we read all the financial and non-financial information in the Strategic

Report and the Report of the Directors to identify material inconsistencies with the audited

financial statements and to identify any information that is apparently materially incorrect

based on, or materially inconsistent with, the knowledge acquired by us in the course of

performing the audit. If we become aware of any apparent material misstatements or

inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2017 and of its 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, based on the work undertaken in the course of our audit, the information given

in the Strategic Report and the Report of the Directors for the financial year for which the

financial statements are prepared is consistent with the financial statements, and has been

prepared in accordance with applicable legal requirements. In the light of the knowledge and

understanding of the company and its environment, we have not identified any material

misstatements in the Strategic Report or the Report of the Directors.

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, or returns adequate for our audit have not been received from branches not visited by us; or

-	the 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.

Ellen O'Donnell (Senior Statutory Auditor)

for and on behalf of Camerons Accountancy Consultants Limited

Statutory Auditor

Chartered Accountants

9 Worton Park

Cassington

Witney

Oxfordshire

OX29 4SX

21 December 2017

TURNOVER

6,394,685

5,302,125

Cost of sales

4,786,659

4,061,583

GROSS PROFIT

1,608,026

1,240,542

Administrative expenses

1,309,328

1,060,464

298,698

180,078

Other operating income

70,308

69,343

OPERATING PROFIT

4

369,006

249,421

Profit/loss on sale of

investment

5

-

3,656,500

369,006

3,905,921

Income from fixed asset investments

-

381,636

Interest receivable and similar income

68

39

68

381,675

369,074

4,287,596

Interest payable and similar expenses

6

6,589

14,516

PROFIT BEFORE TAXATION

362,485

4,273,080

Tax on profit

7

50,127

(22,694

)

PROFIT FOR THE FINANCIAL YEAR

312,358

4,295,774

PROFIT FOR THE YEAR

312,358

4,295,774

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

312,358

4,295,774

FIXED ASSETS

Tangible assets

9

2,040,630

2,020,433

Investments

10

2

2

2,040,632

2,020,435

CURRENT ASSETS

Stocks

11

17,162

44,025

Debtors

12

1,075,970

854,042

Cash at bank and in hand

677,755

223,644

1,770,887

1,121,711

CREDITORS

Amounts falling due within one year

13

982,416

618,388

NET CURRENT ASSETS

788,471

503,323

TOTAL ASSETS LESS CURRENT LIABILITIES

2,829,103

2,523,758

CREDITORS

Amounts falling due after more than one year

14

(218,180

)

(202,978

)

PROVISIONS FOR LIABILITIES

16

(37,161

)

(59,376

)

NET ASSETS

2,573,762

2,261,404

CAPITAL AND RESERVES

Called up share capital

17

160

160

Share premium

18

157,440

157,440

Retained earnings

18

2,416,162

2,103,804

SHAREHOLDERS' FUNDS

2,573,762

2,261,404

The financial statements were approved by the Board of Directors on 21 December 2017 and were signed on its behalf by:

A Pharaon - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 April 2015

160

2,713,030

157,440

2,870,630

Changes in equity

Dividends

-

(4,905,000

)

-

(4,905,000

)

Total comprehensive income

-

4,295,774

-

4,295,774

Balance at 31 March 2016

160

2,103,804

157,440

2,261,404

Changes in equity

Total comprehensive income

-

312,358

-

312,358

Balance at 31 March 2017

160

2,416,162

157,440

2,573,762

Cash flows from operating activities

Cash generated from operations

1

889,150

560,856

Interest element of hire purchase payments paid

(6,589

)

(14,516

)

Tax paid

(8

)

-

Net cash from operating activities

882,553

546,340

Cash flows from investing activities

Purchase of tangible fixed assets

(355,158

)

(251,818

)

Purchase of fixed asset investments

-

(1

)

Sale of tangible fixed assets

11,499

6,069

Sale of fixed asset investments

-

3,657,000

Group loan repayments

9,494

3,015,421

Interest received

68

39

Dividends received

-

381,636

Net cash from investing activities

(334,097

)

6,808,346

Cash flows from financing activities

Loan repayments in year

-

(2,329,560

)

Capital repayments in year

(94,345

)

(50,304

)

Equity dividends paid

-

(4,905,000

)

Net cash from financing activities

(94,345

)

(7,284,864

)

Increase in cash and cash equivalents

454,111

69,822

Cash and cash equivalents at beginning of year

2

223,644

153,822

Cash and cash equivalents at end of year

2

677,755

223,644

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2017

2016

£

£

Profit before taxation

362,485

4,273,080

Depreciation charges

472,383

406,640

Profit on disposal of fixed assets

(10,893

)

(5,742

)

Sale of fixed asset investment

-

(3,656,500

)

Finance costs

6,589

14,516

Finance income

(68

)

(381,675

)

830,496

650,319

Decrease/(increase) in stocks

26,863

(13,793

)

Increase in trade and other debtors

(226,983

)

(166,061

)

Increase in trade and other creditors

258,774

90,391

Cash generated from operations

889,150

560,856

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash

equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2017

31/3/17

1/4/16

£

£

Cash and cash equivalents

677,755

223,644

Year ended 31 March 2016

31/3/16

1/4/15

£

£

Cash and cash equivalents

223,644

153,822

1.	STATUTORY INFORMATION

M. & M. Skip Hire 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.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with 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.

Turnover

Turnover represents net invoiced sales of goods, excluding value added tax. Income from

the hire of skips is recognised when the skip is delivered.

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.

Weighbridge

-

10% on cost

Improvements to leasehold

-

2% on cost

Plant and machinery

-

10% or 25% on cost

Recycling plant

-

at varying rates on cost

Motor vehicles

-

25% on cost and 20% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due

allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the

Income Statement, except to the extent that it relates to items recognised in other

comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that

have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but

not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in

periods different from those in which they are recognised in financial statements.

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

substantively enacted by the year end and that are expected to apply to the reversal of

the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent

that it is probable that they will be recovered against the reversal of deferred tax

liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the

balance sheet. Those held under hire purchase contracts are depreciated over their

estimated useful lives. Those held under finance leases are depreciated over their

estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant

period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to

the company's pension scheme are charged to profit or loss in the period to which they

relate.

3.	EMPLOYEES AND DIRECTORS

The total wages and salaries cost for the year was £1,865,473 (£1,673,990 in 2016).

The total social security cost for the year was £176,152 (£158,654 in 2016).

The total pension cost for the year was £55,546 (£48,663 in 2016).

2017

2016

£

£

Directors' remuneration

134,434

161,250

Directors' pension contributions to money purchase schemes

12,112

10,642

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

2

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2017

2016

£

£

Depreciation - owned assets

379,406

376,670

Depreciation - assets on hire purchase contracts

92,977

29,968

Profit on disposal of fixed assets

(10,893

)

(5,742

)

Auditors' remuneration

13,810

10,340

5.	EXCEPTIONAL ITEMS

2017

2016

£

£

Profit/loss on sale of

investment

-

3,656,500

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2017

2016

£

£

Hire purchase

6,589

14,516

7.

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the profit for the year was as follows:

2017

2016

£

£

Current tax:

UK corporation tax

72,342

(51,393

)

Deferred tax

(22,215

)

28,699

Tax on profit

50,127

(22,694

)

Reconciliation of total tax charge/(credit) included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the

UK. The difference is explained below:

2017

2016

£

£

Profit before tax

362,485

4,273,080

Profit multiplied by the standard rate of corporation tax in the UK of 20% (2016 - 20%)

72,497

854,616

Effects of:

Income not taxable for tax purposes

(2,179

)

(808,783

)

Capital allowances in excess of depreciation

-

(25,421

)

Depreciation in excess of capital allowances

9,970

-

Utilisation of tax losses

(7,954

)

(20,412

)

Adjustments to tax charge in respect of previous periods

8

-

Tax losses written off by joint venture

-

(51,393

)

Deferred taxation

(22,215

)

28,699

Total tax charge/(credit)

50,127

(22,694

)

8.

DIVIDENDS

2017

2016

£

£

Ordinary shares of 1 each

Interim

-

4,905,000

9.	TANGIBLE FIXED ASSETS

Improvements

to

Plant and

Weighbridge

leasehold

machinery

£

£

£

COST

At 1 April 2016

16,220

829,894

875,421

Additions

-

104,518

149,647

Disposals

-

-

(14,085

)

At 31 March 2017

16,220

934,412

1,010,983

DEPRECIATION

At 1 April 2016

7,569

60,949

602,917

Charge for year

1,622

32,396

126,002

Eliminated on disposal

-

-

(13,479

)

At 31 March 2017

9,191

93,345

715,440

NET BOOK VALUE

At 31 March 2017

7,029

841,067

295,543

At 31 March 2016

8,651

768,945

272,504

Recycling

Motor

plant

vehicles

Totals

£

£

£

COST

At 1 April 2016

2,093,897

1,162,186

4,977,618

Additions

56,607

182,414

493,186

Disposals

-

(80,849

)

(94,934

)

At 31 March 2017

2,150,504

1,263,751

5,375,870

DEPRECIATION

At 1 April 2016

1,411,569

874,181

2,957,185

Charge for year

195,587

116,776

472,383

Eliminated on disposal

-

(80,849

)

(94,328

)

At 31 March 2017

1,607,156

910,108

3,335,240

NET BOOK VALUE

At 31 March 2017

543,348

353,643

2,040,630

At 31 March 2016

682,328

288,005

2,020,433