Morton Ward Limited - Accounts to registrar (filleted) - small 17.3

REGISTERED NUMBER: SC235186 (Scotland)

Morton Ward Limited

Financial Statements

for the Year Ended 31st August 2017

Page

Company information

1

Balance sheet

2

to

3

Notes to the financial statements

4

to

8

Directors:

S J Morton

Mrs H J Morton

E J Morton

Secretary:

Mrs H J Morton

Registered office:

12A Timber Bush

Edinburgh

Midlothian

EH6 6QH

Registered number:

SC235186 (Scotland)

Accountants:

Rennie Welch LLP

Academy House

Shedden Park Road

Kelso

Roxburghshire

TD5 7AL

Fixed assets

Intangible assets

4

-

-

Tangible assets

5

23,681

10,821

23,681

10,821

Current assets

Stocks

400

500

Debtors

6

194,670

181,710

Cash at bank

85

69

195,155

182,279

Creditors

Amounts falling due within one year

7

186,622

176,007

Net current assets

8,533

6,272

Total assets less current liabilities

32,214

17,093

Creditors

Amounts falling due after more than one year

8

13,208

9,598

Net assets

19,006

7,495

Capital and reserves

Called up share capital

100

100

Retained earnings

18,906

7,395

Shareholders' funds

19,006

7,495

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

The members have not required the company to obtain an audit of its financial statements for the year ended 31st August 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 Statement of income and retained earnings has not been delivered.

The financial statements were approved by the Board of Directors on 6th February 2018 and were signed on its behalf by:

S J Morton - Director

1.	Statutory information

Morton Ward Limited is a private company, limited by shares , registered in Scotland. 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 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.

Changes in accounting policies

The principal accounting policies adopted in the preparation of the financial statements are set out

below.

The financial statements for the year ended 31st August 2017 are the first financial statements that

comply with FRS102 Section 1A for small entities. The date of transition is 1st September 2015.

There has been no impact to the financial statements on the transition date.

Turnover

Turnover represents the total invoice value, excluding value added tax, of sales made during the year

or the fair value of services provided for amounts not invoiced at the year end.

Turnover arising from the sale of goods is recognised when the significant risks and rewards of

ownership have passed to the buyer. Turnover arising from the provision of services is recognised as

contract activity progresses and the right to consideration is earned. Unbilled turnover is included in

debtors as amounts recoverable on contracts.

Goodwill

Acquired goodwill was fully written off in equal annual instalments over its estimated useful economic

life of 10 years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured

at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Office equipment

-

33% on reducing balance

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment

losses.

Stocks

Stock is valued at the lower of cost and net realisable value. Cost includes all direct expenditure and

appropriate proportion of fixed and variable overheads. Net realisable value is based on estimated

selling prices less further costs expected to be incurred in bringing the stock to completion.

Financial instruments

The following assets and liabilities are classified as financial instruments - trade debtors, trade

creditors, bank loans and directors' loans.

Bank loans are initially measured at the present value of future payments, discounted at a market rate

of interest, and subsequently at amortised cost using the effective interest method.

Directors' loans (being repayable on demand), trade debtors and trade creditors are measured at the

undiscounted amount of the cash or other consideration expected to be paid or received.

Financial assets that are measured at amortised cost are assessed at the end of each reporting period

for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss

is recognised in the Statement of Income and Retained Earnings.

Taxation

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

Income and Retained Earnings 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 the profit or loss over the relevant period. The

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

Rentals paid under operating leases are charged to the profit or loss on a straight line basis over the

period of the lease.

Pensions

The pension costs charged in the financial statements represent the contribution payable by the

company during the year.

Long term contracts

Amounts recoverable on long term contracts, which are included in debtors and stated at the net sales

value of the work done after provisions for contingencies and anticipated future losses on contracts,

less amounts received as progress payments on account. Excess progress payments are included in

creditors as payments received on account.

Employee benefits

Short term employee benefits, including holiday pay, are recognised as an expense in the Statement of

Income and Retained Earnings in the period in which they are incurred.

Going concern

The directors have considered the company's financial position for a period of 12 months from the date

of signing these financial statements and have reasonable expectation that the company has adequate

resources to continue in operational existence for the foreseeable future. Accordingly, they continue to

adopt the going concern basis in preparing these financial statements.

Provisions

Provisions are set up only where it is probable that a present obligation exists as a result of an event

prior to the balance sheet date and that a payment will be required in settlement that can be estimated

reliably.

3.	Employees and directors

The average number of employees during the year was 9 (2016 - 8 ) .

4.	Intangible fixed assets

Goodwill

£

Cost

At 1st September 2016

and 31st August 2017

80,000

Amortisation

At 1st September 2016

and 31st August 2017

80,000

Net book value

At 31st August 2017

-

At 31st August 2016

-

5.	Tangible fixed assets

Fixtures

and

Motor

Office

fittings

vehicles

equipment

Totals

£

£

£

£

Cost

At 1st September 2016

25,016

35,219

14,603

74,838

Additions

-

20,841

1,915

22,756

Disposals

-

(35,219

)

-

(35,219

)

At 31st August 2017

25,016

20,841

16,518

62,375

Depreciation

At 1st September 2016

20,570

29,829

13,618

64,017

Charge for year

668

3,039

799

4,506

Eliminated on disposal

-

(29,829

)

-

(29,829

)

At 31st August 2017

21,238

3,039

14,417

38,694

Net book value

At 31st August 2017

3,778

17,802

2,101

23,681

At 31st August 2016

4,446

5,390

985

10,821

6.

Debtors: amounts falling due within one year

2017

2016

£

£

Trade debtors

96,883

54,105

Amounts recoverable on contract

55,000

87,110

Other debtors

42,787

40,495

194,670

181,710

7.

Creditors: amounts falling due within one year

2017

2016

£

£

Bank loans and overdrafts

26,106

41,830

Hire purchase contracts

5,521

-

Trade creditors

28,159

10,417

Taxation and social security

33,589

18,158

Other creditors

93,247

105,602

186,622

176,007

8.

Creditors: amounts falling due after more than one year

2017

2016

£

£

Bank loans

4,788

9,598

Hire purchase contracts

8,420

-

13,208

9,598

9.	Secured debts

The following secured debts are included within creditors:

2017

2016

£

£

Bank overdrafts

21,315

37,104

The Royal Bank of Scotland hold a guarantee for £55,000 by S & H Morton and a Bond and Floating

charge over the assets.

10.	Other financial commitments

At 31 August 2017, the company had total commitments under non-cancellable operating leases over

the remaining life of those leases of £152,000 (2016 - £176,000).

11.	Directors' advances, credits and guarantees

The following advances and credits to a director subsisted during the years ended 31st August 2017

and 31st August 2016:

2017

2016

£

£

E J Morton

Balance outstanding at start of year

32,694

30,125

Amounts advanced

32,624

32,714

Amounts repaid

(32,700

)

(30,145

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

32,618

32,694

This loan is unsecured, interest has been charged at the official rates published by HMRC and it is

repayable on demand.