Mechshop Limited - Accounts to registrar (filleted) - small 18.1

REGISTERED NUMBER: 02415736 (England and Wales)

MECHSHOP LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2017

Page

Company Information

1

Chartered Accountants' Report

2

Balance Sheet

3

Notes to the Financial Statements

5

DIRECTORS:

I Saunders

S Bloyce

P M Roberts

N Saunders

REGISTERED OFFICE:

Unit 18/19 Stockwood Business Park

Stockwood

Nr Redditch

Worcestershire

B96 6SX

REGISTERED NUMBER:

02415736 (England and Wales)

ACCOUNTANTS:

Breeze & Associates Ltd.

Chartered Accountants

6 Marlborough Place

Brighton

East Sussex

BN1 1UB

BANKERS:

Barclays Bank plc

Park House

Newbrick Road

Stoke Gifford

Bristol

BS34 8YU

The following reproduces the text of the report prepared for the directors 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 Mechshop Limited for the year ended 30 September 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 Mechshop Limited, as a body, in accordance with the terms of our engagement letter dated 26 November 2014. Our work has been undertaken solely to prepare for your approval the financial statements of Mechshop Limited and state those matters that we have agreed to state to the Board of Directors of Mechshop 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 Mechshop Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Mechshop 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 Mechshop Limited. You consider that Mechshop 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 Mechshop 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.

Breeze & Associates Ltd.

Chartered Accountants

6 Marlborough Place

Brighton

East Sussex

BN1 1UB

23 April 2018

FIXED ASSETS

Tangible assets

5

12,782

303,813

CURRENT ASSETS

Stocks

10,496

11,977

Debtors

6

366,114

108,774

Cash at bank

58,951

74,445

435,561

195,196

CREDITORS

Amounts falling due within one year

7

60,527

72,017

NET CURRENT ASSETS

375,034

123,179

TOTAL ASSETS LESS CURRENT LIABILITIES

387,816

426,992

PROVISIONS FOR LIABILITIES

2,428

24,422

NET ASSETS

385,388

402,570

CAPITAL AND RESERVES

Called up share capital

1,000

1,000

Revaluation reserve

8

-

79,881

Retained earnings

8

384,388

321,689

SHAREHOLDERS' FUNDS

385,388

402,570

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 September 2017.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 September 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 19 April 2018 and were signed on its behalf by:

I Saunders - Director

N Saunders - Director

P M Roberts - Director

S Bloyce - Director

1.	STATUTORY INFORMATION

Mechshop 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.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Preparation of consolidated financial statements

The financial statements contain information about Mechshop Limited as an individual company and do not

contain consolidated financial information as the parent of a group. The company has taken the option under

Section 398 of the Companies Act 2006 not to prepare consolidated financial statements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts,

rebates, value added tax and other sales taxes.

Turnover is measured at the fair value of the consideration received or receivable. Turnover is reduced for

estimated customer returns, rebates and other similar allowances.

Revenue from the sale of goods is recognised when all the following conditions are satisfied:

- The Company has transferred to the buyer the significant risks and rewards of ownership of the goods;

- The Company retains neither continuing managerial involvement to the degree usually associated with

ownership nor effective control over the goods sold;

- The amount of revenue can be measured reliably;

- It is probable that the economic benefits associated with the transaction will flow to the Company; and

- The costs incurred or to be incurred in respect of the transaction can be measured reliably

Specifically, revenue from the sale of goods is recognised when they physically leave the premises to be

delivered to the customer.

Tangible fixed assets

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

Short leasehold

-

Straight line over 20 years

Long leasehold

-

No depreciation is provided

Plant and machinery

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

Straight line over 3 years

At each balance sheet date the company reviews the carrying amounts of its property, plant and equipment to

determine whether there is any indication that any items of property, plant and equipment have suffered an

impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to

determine the extent of the impairment loss if any. If the recoverable amount of an asset is estimated to be

less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount.

Impairment loss is recognised as an expense immediately.

No depreciation has been charged to the long leasehold property because the residual value is expected to be

greater than the current carrying amount.

Stocks

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

slow moving items.

Stock is valued at the lower of cost and net realisable value. Cost is determined on an average cost basis. Net

realisable value represents estimated sales price less costs to complete and sell. Provision is made for slow

moving, obsolete or damaged stock where the net realisable value is less than cost.

When stocks are sold, the carrying amount of these stocks is recognised as an expense in the period in which

the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all

losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount

of any reversal of write-down of stocks is recognised as a reduction in the amount of stocks recognised as an

expense in the period in which the reversal occurs

Taxation

Taxation represents the sum of the tax currently payable and deferred tax.

The company's liability to tax is calculated using the tax rates that have been enacted or substantively enacted

by the end of the reporting period.

Deferred tax is recognised on all timing differences between the carrying amounts of the assets and liabilities

in the financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period to

which the liability is settled or the asset realised, based on tax rates and laws that have been enacted or

substantively enacted by the end of the reporting period.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange

ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating

result.

Hire purchase and leasing commitments

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

lease.

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.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 10 (2016 - 10 ) .

5.	TANGIBLE FIXED ASSETS

Short

Long

Plant and

leasehold

leasehold

machinery

£

£

£

COST

At 1 October 2016

3,446

280,000

20,675

Disposals

-

(280,000

)

(2,690

)

At 30 September 2017

3,446

-

17,985

DEPRECIATION

At 1 October 2016

1,893

-

9,240

Charge for year

172

-

2,514

Eliminated on disposal

-

-

(1,314

)

At 30 September 2017

2,065

-

10,440

NET BOOK VALUE

At 30 September 2017

1,381

-

7,545

At 30 September 2016

1,553

280,000

11,435

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 October 2016

14,272

22,914

341,307

Disposals

-

(1,216

)

(283,906

)

At 30 September 2017

14,272

21,698

57,401

DEPRECIATION

At 1 October 2016

11,687

14,674

37,494

Charge for year

646

5,796

9,128

Eliminated on disposal

-

(689

)

(2,003

)

At 30 September 2017

12,333

19,781

44,619

NET BOOK VALUE

At 30 September 2017

1,939

1,917

12,782

At 30 September 2016

2,585

8,240

303,813

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

93,652

75,609

Amounts owed by group undertakings

258,172

26,371

Other debtors

14,290

6,794

366,114

108,774

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade creditors

29,677

38,718

Taxation and social security

13,533

14,566

Other creditors

17,317

18,733

60,527

72,017

8.

RESERVES

Retained

Revaluation

earnings

reserve

Totals

£

£

£

At 1 October 2016

321,689

79,881

401,570

Profit for the year

14,668

-

14,668

Dividends

(31,850

)

-

(31,850

)

Disposal of leasehold

79,881

(79,881

)

-

At 30 September 2017

384,388

-

384,388

9.	OTHER FINANCIAL COMMITMENTS

The bank holds a cross guarantee and debenture by and between Smart Pins Limited and Mechshop Limited.

10.	RELATED PARTY DISCLOSURES

Mechshop is a subsidiary company of Smart PINS Ltd. During the year the company paid management charges

totalling £20,000 (2016: £24,000) to Smart PINS Ltd.

Included in note 8 is a balance of £258,172 (2016: £26,371) owed from Smart PINS Ltd. The loan is interest free

and repayable on demand.

During the year a £40k compensation payment was made to one of the directors of the company.

11.	ULTIMATE PARENT COMPANY

The company is the 100% subsidiary of Smart PINS Ltd, it's ultimate parent undertaking.