Total Machinery Solutions Limited Accounts

TOTAL MACHINERY SOLUTIONS LIMITED - Company Information






Total Machinery Solutions Limited
	Company No. 08048949
		Information for Filing with The Registrar
		31 August 2017

The Directors present their report and the accounts for the year ended 31 August 2017.

Principal activities
The principal activity of the company during the year under review was the servicing and repair of industrial machinery and supply of machinery parts.




Directors

The Directors who served at any time during the year were as follows:

R. Barber
D.K. Wade
L.D. Yates

































































The above report has been prepared in accordance with the provisions applicable to companies subject to the small companies regime as set out in Part 15 of the Companies Act 2006.

Signed on behalf of the board

D.K. Wade
Director
18 May 2018

at	31 August 2017

Company No.		08048949	Notes	2017	2016
				£	£
Fixed assets

	Tangible assets		2	68,678	98,813


				68,678	98,813
Current assets
	Stocks		3	152,711	135,711
	Debtors		4	752,368	959,027

	Cash at bank and in hand			1,141,398	604,151
				2,046,477	1,698,889
Creditors: Amount falling due within one year			5	(1,307,545)	(1,138,520)
Net current assets				738,932	560,369
Total assets less current liabilities				807,610	659,182
Creditors: Amounts falling due after more than one year			6	(7,800)	(31,200)



Net assets				799,810	627,982

Capital and reserves
	Called up share capital			30	30



	Profit and loss account		7	799,780	627,952

Total equity				799,810	627,982


These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies regime of the Companies Act 2006.
For the year ended 31 August 2017 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

As permitted by section 444 (5A)of the Companies Act 2006 the directors have not delivered to the Registrar a copy of the company's profit and loss account.

Approved by the board on 18 May 2018

And signed on its behalf by:

D.K. Wade
Director

for the year ended 31 August 2017

Accounting policies

Basis of preparation

The accounts have been prepared in accordance with FRS 102 - The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard) and the Companies Act 2006 . There were no material departures from that standard.

The accounts have been prepared under the historical cost convention as modified by the revaluation of certain fixed assets and in accordance with the accounting policies set out below.

Turnover

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 goods are delivered and legal title is passed.

Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the profit and loss account because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible timing differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Current or deferred tax for the year is recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.

Tangible fixed assets and depreciation

Tangible fixed assets held for the company's own use are stated at cost less accumulated depreciation and accumulated impairment losses.

At each balance sheet date, the company reviews the carrying amount of its tangible fixed assets to determine whether there is any indication that any items 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.

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

Motor vehicles

25% Reducing blance

Furniture, fittings and equipment

33.33% Reducing balance

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Costs, which comprise direct production costs, are based on the method most appropriate to the type of inventory class, but usually on a first-in-first-out basis. Overheads are charged to profit or loss as incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

When stocks are sold, the carrying amount of those 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 any write-down of stocks is recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts.

Trade and other creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Leased assets

Where the company enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease.
Leases which do not transfer substantially all the risks and rewards of ownership to the Company are classified as operating leases.
Assets held under finance leases are initially recognised as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet date as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the Company's policy on borrowing costs (see the accounting policy above).
Assets held under finance leases are depreciated in the same way as owned assets.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term.

In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis.

Provisions

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the profit and loss account in the year that the Company becomes aware of the obligation, and are measured at the best estimate at balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the balance sheet.

2	Tangible fixed assets
			Motor vehicles	Fixtures, fittings and equipment	Total
			£	£	£
		Cost or revaluation
		At 1 September 2016	121,160	23,747	144,907
		Additions	-	1,196	1,196


		Disposals	(17,426)	-	(17,426)
		At 31 August 2017	103,734	24,943	128,677
		Depreciation
		At 1 September 2016	30,942	15,152	46,094
		Charge for the year	22,093	3,264	25,357


		Disposals	(11,452)	-	(11,452)
		At 31 August 2017	41,583	18,416	59,999
		Net book values
		At 31 August 2017	62,151	6,527	68,678
		At 31 August 2016	90,218	8,595	98,813

3	Stocks
			2017	2016
			£	£


		Finished goods	152,711	135,711
			152,711	135,711

4	Debtors
			2017	2016
			£	£
		Trade debtors	606,651	692,748





		Other debtors	1,500	1,500
		Prepayments and accrued income	144,217	264,779
			752,368	959,027

5	Creditors:
		amounts falling due within one year
			2017	2016
			£	£



		Obligations under finance lease and hire purchase contracts	23,400	23,400
		Trade creditors	153,988	200,145

		Corporation tax	168,245	179,597
		Other taxes and social security	111,658	116,751
		Loans from directors	823,205	589,083

		Accruals and deferred income	27,049	29,544
			1,307,545	1,138,520

6	Creditors:
		amounts falling due after more than one year
			2017	2016
			£	£



		Obligations under finance lease and hire purchase contracts	7,800	31,200




			7,800	31,200

Reserves

Profit and loss account - includes all current and prior period retained profits and losses.

8	Dividends
			2017	2016
			£	£
		Dividends for the period:
		Dividends paid in the period	486,000	486,000

			486,000	486,000

		Dividends by type:

		Equity dividends	486,000	486,000
			486,000	486,000

Related party disclosures

Controlling parties

Immediate controlling party

R Barber; L D Yates & D K Wade

Ultimate controlling party

R Barber; L D Yates & D K Wade

Additional information

Its registered number is:

08048949

Its registered office is:

2-6 Upton Road

Rugby

CV22 7DL