MCJ Fabrications Limited - Accounts to registrar (filleted) - small 18.1

REGISTERED NUMBER: 08546385 (England and Wales)

Unaudited Financial Statements

for the Year Ended

31 December 2017

for

MCJ Fabrications Limited

Page

Balance Sheet

1

Notes to the Financial Statements

3

FIXED ASSETS

Intangible assets

4

13,688

32,888

Tangible assets

5

85,410

92,166

99,098

125,054

CURRENT ASSETS

Debtors

6

1,218,922

903,307

Cash at bank and in hand

68,391

143,585

1,287,313

1,046,892

CREDITORS

Amounts falling due within one year

7

1,162,278

981,381

NET CURRENT ASSETS

125,035

65,511

TOTAL ASSETS LESS CURRENT LIABILITIES

224,133

190,565

CREDITORS

Amounts falling due after more than one year

8

(9,136

)

-

PROVISIONS FOR LIABILITIES

(14,385

)

(16,520

)

NET ASSETS

200,612

174,045

CAPITAL AND RESERVES

Called up share capital

11

100

100

Retained earnings

200,512

173,945

SHAREHOLDERS' FUNDS

200,612

174,045

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

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 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 Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors on 8 June 2018 and were signed on its behalf by:

M K Fortune - Director

1.	STATUTORY INFORMATION

MCJ Fabrications Limited is a private company, limited by shares , registered in England and Wales.

The company's registered number and registered office address are as below:

Registered number:

08546385

Registered office:

147 Union Road

Liversedge

West Yorkshire

WF15 7JT

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 UK and Republic of Ireland" and the Companies Act

2006 as applicable to companies subject to the small companies regime. The disclosure requirements

of section 1A of FRS 102 have been applied other than where additional disclosure is required to give

a true and fair view.

The financial statements have been prepared under the historical cost convention modified to include

certain items at fair value.

Turnover

Turnover is stated net of VAT and trade discounts and is recognised when the significant risks and

rewards are considered to have been transferred to the buyer. Turnover from the sale of goods is

recognised on delivery.

Turnover from the supply of services represents the value of services provided under contracts to the

extent that there is a right to consideration and is recorded at the fair value of the consideration

received or receivable. Where a contract has only been partially completed at the balance sheet date

turnover represents the fair value of the service provided to date based on the stage of completion of

the contract activity at the balance sheet date. Where payments are received from customers in

advance of services provided, the amounts are recorded as deferred income and included as part of

creditors due within one year.

Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are

recognised by reference to the stage of completion of the contract activity at the balance sheet date.

This is normally measured by the proportion that contract costs incurred for work performed to date

bear to the estimated total contract costs, except where this would not be representative of the stage of

completion. Variations in contract work, claims and incentive payments are included to the extent that

the amount can be measured reliably and its receipt considered probable.

Where the outcome of a contract cannot be estimated reliably, contract revenue is recognised to the

extent of contract costs incurred where it is probable they will be recoverable. Contract costs are

recognised as expenses in the period in which they are incurred.

When it is probable that total contract costs will exceed total contract revenue, the expected loss is

recognised as an expense immediately.

Goodwill

Goodwill arising on the acquisition of subsidiary undertakings and businesses, representing any

excess of fair value of the consideration given over the fair value of the identifiable assets and liabilities

acquired, is capitalised and written off on a straight line basis over its economic life, which is 5 years.

Provision is made for any impairment.

Tangible fixed assets

Tangible fixed assets are stated at purchase cost together with any incidental expenses of acquisition,

net of depreciation and any provision for impairment.

Depreciation is provided on all tangible assets, other than and freehold land, at rates calculated to write

off the cost less estimated residual value of each asset over its expected useful life.

Plant, equipment - 20% straight line

Fixtures & fittings - 20% straight line

Motor Vehicles - 25% straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an

asset after deducting estimated costs of disposal, if the asset were already at an age and in the

condition expected at the end of its estimated useful life.

The need for any fixed asset impairment write down is assessed by comparison of the carrying value

of the assets against the higher of realisable value and value in use.

The gain or loss arising on the disposal of an asset is determined on the difference between the sale

proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of

the asset received or receivable. Grants are classified as relating either to revenue or to assets.

Grants relating to revenue are recognised in income over the period in which the related costs are

recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where

part of a grant relating to an asset is deferred, it is recognised as deferred income.

Taxation

Current tax, including UK corporation tax is provided at amounts expected to be paid (or recovered)

using the tax rates and laws that have been enacted or substantively enacted by the balance sheet

date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at

the balance sheet date where transactions or events that result in an obligation to pay more tax in the

future or a right to pay less tax in the future have occurred at the balance sheet date. Timing

differences are differences between the company's taxable profits and its results as stated in the

financial statements that arise from the inclusion of gains and losses in tax assessments in periods

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

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.

Assets held under finance leases, hire purchase contracts and other similar arrangements, which

confer rights and obligations similar to those attached to owned assets, are capitalised as tangible

fixed assets at the fair value of the leased asset (or, if lower the present value of the minimum lease

payments as determined at the inception of the lease) and are depreciated over the shorter of the

lease terms and their useful lives. The capital elements of future lease obligations are recorded as

liabilities, while the interest elements are charged to the profit and loss account over the period of the

leases to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the

payments are not made on such basis. Benefits received and receivable as an incentive to sign an

operating lease are similarly spread on a straight-line basis over the lease term.

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.

Financial instruments

Financial assets and financial liabilities are recognised when the company becomes a party to the

contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual

arrangements entered into. An equity instrument is any contract that evidences a residual interest in

the assets of the company after deducting all of its liabilities.

All financial assets and liabilities are initially measured at transaction price (including transaction

costs), except for those financial assets classified as at fair value through profit and loss, which are

initially measured at fair value (which is normally the transaction price excluding transaction costs),

unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing

transaction, the financial asset or financial liability is measured at the present value of the future

payments discounted at a market rate of interest for a similar debt instrument.

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

debtors, cash and bank balances, trade creditors and other creditors.

Trade debtors, other debtors, cash and bank balances, trade creditors and other creditors (being

repayable on demand) are measured at the amortised cost equivalent to the undiscounted amount of

cash or other consideration expected to be paid or received.

Dividends

Critical accounting judgements and sources of estimation uncertainty

In the application of the Company's accounting policies, management is required to make judgements,

estimates and assumptions about the carrying values of assets and liabilities that are not readily

apparent from other sources. The estimates and associated assumptions are based on historical

experience and other factors that are considered to be relevant. Actual results may differ from these

estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to

accounting estimates are recognised in the period in which the estimate is revised if the revision

affects only that period, or in the period of the revision and future periods if the revision affects both

current and future periods.

The critical judgements that the directors have made in applying the company's accounting policies

and the key sources of estimation uncertainty that have had the most significant effect on the amounts

recognised in the financial statements are described below:

Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful

economic lives and residual values of the assets. The useful economic lives and residual values are

re-assessed annually. They are amended when necessary to reflect current estimates, based on

technological advancement, future investments, economic utilisation and the physical condition of the

assets.

Recoverability of trade debtors

Outstanding trade debtor balances are reviewed on a line by line basis by management to identify

possible amounts where an impairment provision is required. When assessing recoverability the

directors have considered factors such as the ageing of the debts, past experience of recoverability,

and the credit profile of individual customers.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 51 (2016 - 46 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 January 2017

and 31 December 2017

96,951

AMORTISATION

At 1 January 2017

64,063

Charge for year

19,200

At 31 December 2017

83,263

NET BOOK VALUE

At 31 December 2017

13,688

At 31 December 2016

32,888

5.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 January 2017

130,856

Additions

21,891

Disposals

(17,000

)

At 31 December 2017

135,747

DEPRECIATION

At 1 January 2017

38,690

Charge for year

28,647

Eliminated on disposal

(17,000

)

At 31 December 2017

50,337

NET BOOK VALUE

At 31 December 2017

85,410

At 31 December 2016

92,166

The net book value of tangible fixed assets included £26,877 (2016 - £Nil) in respect of assets held

under hire purchase agreements.

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

1,167,281

780,428

Amounts recoverable on contract

8,132

38,623

Other debtors

43,509

84,256

1,218,922

903,307

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Hire purchase contracts (see note 9)

8,433

-

Trade creditors

381,750

389,481

Taxation and social security

206,341

153,152

Other creditors

565,754

438,748

1,162,278

981,381

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2017

2016

£

£

Hire purchase contracts (see note 9)

9,136

-

9.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2017

2016

£

£

Net obligations repayable:

Within one year

8,433

-

Between one and five years

9,136

-

17,569

-

Non-cancellable

operating leases

2017

2016

£

£

Within one year

6,052

10,038

Between one and five years

3,019

9,071

9,071

19,109

10.	SECURED DEBTS

The following secured debts are included within creditors:

2017

2016

£

£

Hire purchase contracts

17,569

-

Factoring account

250,018

198,720

267,587

198,720

Nucleus Commercial Finance Limited hold a fixed and floating charge over the assets of the company

in relation to the factoring account balance.

Assets held under hire purchase are secured on the assets to which the lease relates.

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2017

2016

value:

£

£

60

Ordinary A shares

£1

60

60

20

Ordinary B shares

£1

20

20

20

Ordinary C shares

£1

20

20

100

100

All shares rank pari-passu in relation to voting rights and dividends