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Mannley Cylinders Limited
Registered number: 06269728
Annual report and financial statements
For the year ended 28 February 2018
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06269728
28 February 2018
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MANNLEY CYLINDERS LIMITED
REGISTERED NUMBER: 06269728
STATEMENT OF FINANCIAL POSITION
AS AT 28 FEBRUARY 2018
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2017 (Unaudited)
As restated
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 16 January 2019.
The notes on pages 3 to 11 form part of these financial statements.
Page 1
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06269728
28 February 2018
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MANNLEY CYLINDERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2018
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At 1 March 2017 (as previously stated and unaudited)
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Prior year adjustment - Note 9
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At 1 March 2017 (as restated and unaudited)
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The notes on pages 3 to 11 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2017
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At 1 March 2016 (as previously stated and unaudited)
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Prior year adjustment - Note 9
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At 1 March 2016 (as restated)
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Loss for the year - unaudited
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At 28 February 2017 (as restated and unaudited)
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The notes on pages 3 to 11 form part of these financial statements.
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The statement of changes in equity was unaudited in the financial year ended 28 February 2017.
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Page 2
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06269728
28 February 2018
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MANNLEY CYLINDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2018
Mannley Cylinders Limited is a private company, limited by shares, registered in England and Wales. The Company's registered number is 06269728 and its registered office address is Sandbeds Trading Estate, Dewsbury Road, Ossett, Wakefield, West Yorkshire, WF5 9ND. The principle activity of the Company is the wholesale of hardware, plumbing and heating equipment and supplies.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The prior year figures are unaudited because they didn't fall into the scope of requiring an audit.
The following principal accounting policies have been applied:
The directors intend that the Company will cease trading within 12 months of the balance sheet date. As a result the directors' do not consider the Company to be a going concern. These financial statements are therefore prepared on a basis other than the going concern basis. The basis of preparation has not had a material impact on the carrying values of the assets and liabilities of the Company.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
∙the Company has transferred the significant risks and rewards of ownership to the buyer;
∙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 Company will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Page 3
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06269728
28 February 2018
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MANNLEY CYLINDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2018
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of comprehensive income, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of financial position date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Page 4
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06269728
28 February 2018
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MANNLEY CYLINDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2018
2.Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of comprehensive income.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
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.
Page 5
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06269728
28 February 2018
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MANNLEY CYLINDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2018
2.Accounting policies (continued)
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Provisions for liabilities
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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 Statement of comprehensive income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of financial position 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 Statement of financial position.
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Judgments in applying accounting policies and key sources of estimation uncertainty
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Critical judgements in applying the accounting policies
The critical judgements that the Directors have made in the process of applying the Company's accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements:
(i) Assessing indicators of impairment
In assessing whether there have been any indicators of impairment of assets, the Directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability and where applicable, the ability of the asset to be operated as planned. There have been no indicators of impairments identified during the current financial year.
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty, that have an enhanced risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:
(i) Recoverability of receivables
The Company establishes a provision for receivables that are estimated not to be recoverable. When assessing recoverability the directors have considered factors such as the aging of the receivables, past experience of recoverability, and the credit profile of individual or groups of customers.
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The Company has no employees other than the directors, who did not receive any remuneration (2017 unaudited - £NIL).
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The average monthly number of employees, including directors, during the year was nil (2017 unaudited - nil).
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Page 6
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06269728
28 February 2018
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MANNLEY CYLINDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2018
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Charge for the year on owned assets
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The cost, depreciation and net book value information at 1 March 2017 ws unaudited.
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Page 7
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06269728
28 February 2018
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MANNLEY CYLINDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2018
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2017 (Unaudited) As restated
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Amounts owed by group undertakings
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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2017 (Unaudited) As restated
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Amounts owed to group undertakings
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Accruals and deferred income
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Page 8
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06269728
28 February 2018
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MANNLEY CYLINDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2018
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Charged to profit or loss
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The deferred tax asset is made up as follows:
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Tax losses carried forward
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Page 9
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06269728
28 February 2018
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MANNLEY CYLINDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2018
While the prior period has not been audited, the comparatives have been updated to include various accruals and provisions which were not included in the prior year accounts. There have also been other balance sheet corrections, namely to the intercompany position and the VAT position:
The impact of these accruals/provisions adjustments is to increase/(decrease) the figures in the Statement of Comprehensive Income and Statement of Financial Position as follows:
Statement of Comprehensive Income Statement of Financial Position
Accruals/provisions adjustments: Accruals/provisions adjustments:
Administrative expenses 1,228 Trade debtors (10,369)
Cost of sales 15,415 Accruals 15,415
Corporation tax charge (5,542) Corporation tax creditor (2,722)
Deferred tax provision (2,820)
Profit & loss reserves:
Opening (9,141)
Closing (20,242)
Other corrections: Other corrections:
Administrative expenses (142) Intercompany debtor 7,058
Trade creditors (1,212)
VAT debtor (9,198)
Profit & loss reserves:
Opening (1,070)
Closing (928)
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Related party transactions
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During the year the company was charged £4,969 (2017 unaudited: £4,775) for rent and other services by R C Marsden Properties Limited, a company in which Mr R C Marsden is a director. Mr R C Marsden was also a director of Mannley Cylinders Limited during the financial period. At 29 February 2018 the balance owed to that company was £612 (2017 unaudited: £2,289).
During the year the Company bought goods and services totalling £273,287 (2017 unaudited: £190,856) and was charged £75,442 (2017 unaudited: £95,860) for administrative services by RM Solar Limited, a company which is also owned by Joule Group Limited. At 28 February 2018 the balance owed to that company was £37,213 (2017 unaudited: £42,565).
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Page 10
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06269728
28 February 2018
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MANNLEY CYLINDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2018
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Ultimate Parent Undertaking and Controlling Party
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The company is a wholly owned subsidiary of Joule Group Limited, a company incorporated in the Republic of Ireland (Company Number 515585).
On 29 December 2017, Joule Group Limited acquired 100% of the share capital of Mannley Cylinders Limited.
The parent company of the smallest group of which the company is a member and for which group financial statements are prepared is Joule Group Limited.
The parent company of the largest group of which the company is a member and for which group financial statements are prepared is Inventum Beheerf B.V. a company incorporated in the Netherlands with chambre of commerce number 62135686 whose registered office is at Kaagschip 25, 3991 CS Houten, The Netherlands.
The auditor's report on the financial statements for the year ended 28 February 2018 was qualified.
The qualification in the audit report was as follows:
"For turnover, the audit evidence available to us was limited with respect to the timing of its recognition. This is due to there being insufficient available audit evidence to enable the verification of the point at which the goods were received by the customer and therefore the point when turnover should be recognised. We are not able to quantify the value of any potential misstatement if one does exist. Should there be a misstatement in revenue there would also be an error within the Statement of Comprehensive Income for associated cost of sales and taxation and errors in the Statement of Financial Position for prepayments and accruals and corporation tax".
The auditor's report on the financial statements for the year ended 28 February 2018 contained an emphasis of matter paragraph.
The emphasis of matter was as follows:
"We draw attention to Note 2.2 to the financial statements which explains that the directors intend to liquidate the company and therefore do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly the financial statements have been prepared on a basis other than going concern as described in Note 2.2. Our opinion is not modified in respect of this matter"
The auditor's report on the financial statements for the year ended 28 February 2018 also drew attention to the following matter:
"Without qualifying our opinion we draw attention to the accounting policies on page 3 of the financial statements and the fact that the comparative information was unaudited".
The audit report was signed on 16 January 2019 by Ross Preston (Senior statutory auditor) on behalf of Mazars LLP.
Page 11
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