Melling Commercial Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 05751934 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2018

FOR

MELLING COMMERCIAL LIMITED

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

4

Directors' Responsibilities Statement

9

Independent Chartered Accountants' Review Report

10

DIRECTORS:

C Melling

L Edwards

SECRETARY:

S J Melling

REGISTERED OFFICE:

Westwood Motor Group

Manchester Road

Ince

Wigan

Lancashire

WN2 2EA

REGISTERED NUMBER:

05751934 (England and Wales)

ACCOUNTANTS:

Fairhurst

Chartered Accountants

Douglas Bank House

Wigan Lane

Wigan

Lancashire

WN1 2TB

BANKERS:

Lloyds TSB

3rd Floor

53 King Street

Manchester

M60 2LE

FIXED ASSETS

Intangible assets

4

-

-

Tangible assets

5

4,063,419

2,643,772

4,063,419

2,643,772

CURRENT ASSETS

Stocks

454,666

405,161

Debtors

6

651,332

489,877

Cash at bank and in hand

460,486

514,608

1,566,484

1,409,646

CREDITORS

Amounts falling due within one year

7

2,951,705

2,217,884

NET CURRENT LIABILITIES

(1,385,221

)

(808,238

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,678,198

1,835,534

CREDITORS

Amounts falling due after more than one year

8

(1,192,025

)

(575,756

)

PROVISIONS FOR LIABILITIES

10

(240,000

)

(186,000

)

NET ASSETS

1,246,173

1,073,778

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

11

1,246,073

1,073,678

SHAREHOLDERS' FUNDS

1,246,173

1,073,778

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 July 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 July 2018 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 29 November 2018 and were signed on its behalf by:

C Melling - Director

1.	STATUTORY INFORMATION

Melling Commercial 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 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.

Turnover

Turnover represents the fair value of income received from the sale and leasing of motor vehicles, excluding

discounts and value added tax.

The company recognises revenue when the goods have been delivered and the title of goods has passed.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of the business in 2006, has been fully

written down.

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 or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Vehicles on rental

-

33% on cost and over the remaining term of the lease

Computer equipment

-

20% on reducing balance

Tangible fixed assets are stated at cost or valuation, less depreciation and impairment.

Impairment of assets

At each reporting date assets are reviewed to determine whether there is any indication that those assets have

suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any

affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower,

the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised

immediately in the profit and loss.

Where an impairment loss subsequently reverses, the carrying amount of each asset is increased to the revised

estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying

amount that would have been determined (net of depreciation) had no impairment loss been recognised for the

asset in prior years. A reversal of an impairment loss is recognised as income immediately.

Stocks

Stocks of motor vehicles for sale are valued at the lower of cost and estimated selling price less costs to sell.

Financial instruments

Trade and other debtors are initially recognised at the transaction price and thereafter stated at amortised cost

using effective interest method, less impairment losses for bad and doubtful debts except where the effect of

discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad

and doubtful debts.

Short term trade creditors are measured at transaction price. Financial liabilities that have no stated interest rate

and are payable within one year shall be measured at the undiscounted amount due.

Related party loans have no stated interest rate, are payable on demand and are measured at the undiscounted

amount due.

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 statement of financial position date.

Deferred tax

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

statement of financial position 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.

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.

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

the lease.

Short term employee benefits

Short-term employee benefits are recognised as an expense in the period in which they are incurred.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 18 (2017 - 16 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 August 2017

and 31 July 2018

50,000

AMORTISATION

At 1 August 2017

and 31 July 2018

50,000

NET BOOK VALUE

At 31 July 2018

-

At 31 July 2017

-

5.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Vehicles

Computer

machinery

fittings

on rental

equipment

Totals

£

£

£

£

£

COST

At 1 August 2017

26,858

124,198

2,979,209

28,456

3,158,721

Additions

7,000

4,154

3,944,775

4,022

3,959,951

Disposals

-

-

(2,346,149

)

-

(2,346,149

)

At 31 July 2018

33,858

128,352

4,577,835

32,478

4,772,523

DEPRECIATION

At 1 August 2017

14,845

34,133

448,025

17,946

514,949

Charge for year

2,163

14,133

774,889

2,557

793,742

Eliminated on disposal

-

-

(599,587

)

-

(599,587

)

At 31 July 2018

17,008

48,266

623,327

20,503

709,104

NET BOOK VALUE

At 31 July 2018

16,850

80,086

3,954,508

11,975

4,063,419

At 31 July 2017

12,013

90,065

2,531,184

10,510

2,643,772

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade debtors

357,041

351,536

Amounts owed by group undertakings

188,946

110,000

Other debtors

105,345

28,341

651,332

489,877

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Hire purchase contracts

2,600,921

1,745,363

Trade creditors

126,526

167,360

Taxation and social security

37,486

247,537

Other creditors

186,772

57,624

2,951,705

2,217,884

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2018

2017

£

£

Hire purchase contracts

1,192,025

575,756

9.	SECURED DEBTS

The following secured debts are included within creditors:

2018

2017

£

£

Hire purchase contracts

3,792,946

2,321,119

Hire Purchase liabilities are secured by a fixed charge over the asset concerned together with a debenture over

the assets of the company.

10.	PROVISIONS FOR LIABILITIES

2018

2017

£

£

Deferred tax

240,000

186,000

Deferred

tax

£

Balance at 1 August 2017

186,000

Provided during year

54,000

Balance at 31 July 2018

240,000

11.

RESERVES

Retained

earnings

£

At 1 August 2017

1,073,678

Profit for the year

385,395

Dividends

(213,000

)

At 31 July 2018

1,246,073

12.	OTHER FINANCIAL COMMITMENTS

The company has total operating lease commitments amounting to £741,724 (2017 - £259,947).

The company has a lease fleet rental facility of up to £6m.

13.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party

transactions with wholly owned subsidiaries within the group.

14.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is C Melling.

The following reproduces the text of the report prepared for the directors and members 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 Statement of Financial Position. 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.

We confirm that as directors we have met our duty in accordance with the Companies Act 2006 to:

-	ensure that the company has kept proper accounting records;

-	prepare financial statements which give a true and fair view of the state of affairs of the company as at 31 July 2018 and of its profit for that period in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	follow the applicable accounting policies, subject to any material departures disclosed and explained in the notes to the financial statements.

ON BEHALF OF THE BOARD:

C Melling - Director

29 November 2018

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 Statement of Financial Position. 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.

We have reviewed the financial statements of Melling Commercial Limited for the year ended 31 July 2018, which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity and the related notes 1 to 16. 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 directors, as a body, in accordance with our terms of engagement. Our review has been undertaken so that we might state to the directors those matters that we have agreed with them in our engagement letter 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 directors as a body for our work, for this report or the conclusions we have formed.

Directors' responsibility for the financial statements

As explained more fully in the Directors' Responsibilities Statement set out on page twelve, the directors are responsible

for the preparation of the financial statements and for being satisfied that they give a true and fair view.

Accountants' responsibility

Our responsibility is to express a conclusion based on our review of the financial statements. We conducted our review

in accordance with International Standard on Review Engagements (ISRE) 2400 (Revised), 'Engagements to review

historical financial statements' and ICAEW Technical Release TECH 09/13AAF 'Assurance review engagements on

historical financial statements'. ISRE 2400 also requires us to comply with the ICAEW Code of Ethics.

Scope of the assurance review

A review of financial statements in accordance with ISRE 2400 (Revised) is a limited assurance engagement. We have

performed additional procedures to those required under a compilation engagement. These primarily consist of making

enquiries of management and others within the entity, as appropriate, applying analytical procedures and evaluating the

evidence obtained. The procedures performed in a review are substantially less than those performed in an audit

conducted in accordance with International Standards on Auditing (UK and Ireland). Accordingly, we do not express an

audit opinion on these financial statements.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the financial statements have not been prepared:

-	so as to give a true and fair view of the state of the company's affairs as at 31 July 2018 and of its profit for the year then ended;

-	in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	in accordance with the requirements of the Companies Act 2006.

Fairhurst

Chartered Accountants

Douglas Bank House

Wigan Lane

Wigan

Lancashire

WN1 2TB

29 November 2018