Company Registration No. 00435262 (England and Wales)
MINTON, TREHARNE & DAVIES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2018
MINTON, TREHARNE & DAVIES LIMITED
COMPANY INFORMATION
Directors
Mr J E Minton
Mr R J Minton
Mr C J Minton
Secretary
Mrs J A Minton
Company number
00435262
Registered office
Merton House
Croescadarn Close
Pentwyn
CARDIFF
South Glamorgan
UK
CF23 8HF
Auditor
MHA Broomfield Alexander
Ty Derw
Lime Tree Court
Cardiff Gate Business Park
CARDIFF
UK
CF23 8AB
MINTON, TREHARNE & DAVIES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 33
MINTON, TREHARNE & DAVIES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2018
- 1 -
The directors present the strategic report for the year ended 31 March 2018.
Fair review of the business
The Company continues to achieve its strategy of growth through diversification with much more emphasis on quality of service.
Turnover in the year for the group has decreased slightly from £16.51m to £15.95m. The company has managed to contain its cost of sales, during a period of escalating costs . This was achieved through concentration of cost reduction strategies, coupled with improved efficiencies.
The Company is optimistic regarding the future. It is believed that the impending re-location of the business to a purpose built facility, the policy of providing a superior service to customers, coupled with the continuing investment in technology (aiming to provide greater transparency) will keep the group at the forefront of the industry.
Principal risks and uncertainties
Business Continuity The disaster recovery plan continues to be reviewed and strengthened.
Competition The Company continues to monitor the performance of its main competitors.
Interest Rate Risk The Company finances its operations through a mixture of retained profits, finance agreements and bank borrowings. The Company's exposure is managed by the use of fixed charge lease agreements and variable rate bank facilities.
Liquidity risk The Company utilises appropriately termed debt finance that is designed to ensure that it has sufficient funds for operations.
Credit risk The Company has robust credit controls in place to mitigate the risk of bad debts.
Key Performance Indicators
2018 2017 Variance
Revenue 15,948,591 16,512,047 988,673
Cost of Sales 8,144,965 8,674,287 811,963
Gross Profit 7,803,626 7,837,760 176,710
Gross Profit % 48.9% 47.5%
Administrative expenses 6,111,370 5,348,546 860,489
Other operating income 399,778 409,565 (10,086)
Operating Profit 2,092,034 2,898,779 (693,864)
Operating Profit %
13.1%
17.6%
Mr J E Minton
Director
21 March 2019
MINTON, TREHARNE & DAVIES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2018
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2018.
Principal activities
The principal activity of the company during the year were research and consulting scientists, analytical and testing laboratories, product development and exploitation.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr J E Minton
Mr R J Minton
Mr C J Minton
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £200,000. The directors do not recommend payment of a further dividend.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor
of the
company is
unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor
of the
company
is
aware of that information.
On behalf of the board
Mr J E Minton
Director
21 March 2019
MINTON, TREHARNE & DAVIES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2018
- 3 -
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
MINTON, TREHARNE & DAVIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MINTON, TREHARNE & DAVIES LIMITED
- 4 -
Opinion
We have audited the
financial statements of Minton, Treharne & Davies Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2018 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2018 and of the group's profit for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's
responsibilities for the audit of the financial statements
section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the
group's or the parent
company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the
financial statements
does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
MINTON, TREHARNE & DAVIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MINTON, TREHARNE & DAVIES LIMITED
- 5 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors' r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the
group and the parent
company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
-
the parent company financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of directors' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the
group's and the parent
company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the
group or the parent
company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
MINTON, TREHARNE & DAVIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MINTON, TREHARNE & DAVIES LIMITED
- 6 -
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report 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 members as a body, for our audit work, for this report, or for the opinions we have formed.
Ian Thomas BSc FCA DChA (Senior Statutory Auditor)
for and on behalf of
28 March 2019
Chartered Accountants
Statutory Auditor
Ty Derw
Lime Tree Court
Cardiff Gate Business Park
CARDIFF
UK
CF23 8AB
MINTON, TREHARNE & DAVIES LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2018
- 7 -
2018
2017
Notes
£
£
Turnover
2
15,948,591
16,512,047
Cost of sales
(8,144,965)
(8,674,287)
Gross profit
7,803,626
7,837,760
Administrative expenses
(6,111,370)
(5,348,546)
Other operating income
399,778
409,565
Operating profit
3
2,092,034
2,898,779
Interest receivable and similar income
7
-
3,179
Interest payable and similar expenses
8
(85,596)
(117,440)
Profit before taxation
2,006,438
2,784,518
Tax on profit
9
(490,818)
(503,892)
Profit for the financial year
1,515,620
2,280,626
Profit for the financial year is attributable to:
- Owners of the parent company
1,613,135
2,187,066
- Non-controlling interests
(97,515)
93,560
1,515,620
2,280,626
The Profit And Loss Account has been prepared on the basis that all operations are continuing operations.
MINTON, TREHARNE & DAVIES LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2018
- 8 -
2018
2017
£
£
Profit for the year
1,515,620
2,280,626
Other comprehensive income
-
-
Total comprehensive income for the year
1,515,620
2,280,626
Total comprehensive income for the year is attributable to:
- Owners of the parent company
1,613,135
2,187,066
- Non-controlling interests
(97,515)
93,560
1,515,620
2,280,626
MINTON, TREHARNE & DAVIES LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2018
31 March 2018
- 9 -
2018
2017
Notes
£
£
£
£
Fixed assets
Tangible assets
11
8,635,943
8,721,019
Investments
12
249,560
249,560
8,885,503
8,970,579
Current assets
Debtors
15
9,537,414
8,559,583
Cash at bank and in hand
2,779,306
3,432,200
12,316,720
11,991,783
Creditors: amounts falling due within one year
16
(3,631,455)
(3,866,592)
Net current assets
8,685,265
8,125,191
Total assets less current liabilities
17,570,768
17,095,770
Creditors: amounts falling due after more than one year
17
(2,046,033)
(2,601,889)
Provisions for liabilities
20
(648,948)
(637,690)
Net assets
14,875,787
13,856,191
Capital and reserves
Called up share capital
22
100,000
100,000
Capital redemption reserve
10,000
10,000
Profit and loss reserves
14,456,772
13,339,661
Equity attributable to owners of the parent company
14,566,772
13,449,661
Non-controlling interests
309,015
406,530
14,875,787
13,856,191
The financial statements were approved by the board of directors and authorised for issue on 21 March 2019 and are signed on its behalf by:
21 March 2019
Mr J E Minton
Director
MINTON, TREHARNE & DAVIES LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2018
31 March 2018
- 10 -
2018
2017
Notes
£
£
£
£
Fixed assets
Tangible assets
11
8,577,812
8,609,084
Investments
12
305,250
305,250
8,883,062
8,914,334
Current assets
Debtors
15
6,399,321
6,268,125
Cash at bank and in hand
2,303,572
2,160,652
8,702,893
8,428,777
Creditors: amounts falling due within one year
16
(4,679,315)
(5,132,604)
Net current assets
4,023,578
3,296,173
Total assets less current liabilities
12,906,640
12,210,507
Creditors: amounts falling due after more than one year
17
(2,046,033)
(2,601,889)
Provisions for liabilities
20
(269,636)
(258,378)
Net assets
10,590,971
9,350,240
Capital and reserves
Called up share capital
22
100,000
100,000
Capital redemption reserve
10,000
10,000
Profit and loss reserves
10,480,971
9,240,240
Total equity
10,590,971
9,350,240
As permitted by s408 Companies Act 2006, the
c
ompany has not presented its own profit and loss account and related notes. The
c
ompany’s profit for the year was £1,440,731 (2017 - £1,536,472 profit).
The financial statements were approved by the board of directors and authorised for issue on 21 March 2019 and are signed on its behalf by:
21 March 2019
Mr J E Minton
Director
Company Registration No. 00435262
MINTON, TREHARNE & DAVIES LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2018
- 11 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 April 2016
100,000
10,000
11,552,595
11,662,595
312,970
11,975,565
Year ended 31 March 2017:
Profit and total comprehensive income for the year
-
-
2,187,066
2,187,066
93,560
2,280,626
Dividends
10
-
-
(400,000)
(400,000)
-
(400,000)
Balance at 31 March 2017
100,000
10,000
13,339,661
13,449,661
406,530
13,856,191
Year ended 31 March 2018:
Profit and total comprehensive income for the year
-
-
1,613,135
1,613,135
(97,515)
1,515,620
Dividends
10
-
-
(200,000)
(200,000)
-
(200,000)
Other movements
-
-
(296,024)
(296,024)
-
(296,024)
Balance at 31 March 2018
100,000
10,000
14,456,772
14,566,772
309,015
14,875,787
MINTON, TREHARNE & DAVIES LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2018
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2016
100,000
10,000
8,103,768
8,213,768
Year ended 31 March 2017:
Profit and total comprehensive income for the year
-
-
1,536,472
1,536,472
Dividends
10
-
-
(400,000)
(400,000)
Balance at 31 March 2017
100,000
10,000
9,240,240
9,350,240
Year ended 31 March 2018:
Profit and total comprehensive income for the year
-
-
1,440,731
1,440,731
Dividends
10
-
-
(200,000)
(200,000)
Balance at 31 March 2018
100,000
10,000
10,480,971
10,590,971
MINTON, TREHARNE & DAVIES LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2018
- 13 -
2018
2017
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
1,480,926
3,871,133
Interest paid
(85,596)
(117,440)
Income taxes paid
(254,168)
(318,610)
Net cash inflow from operating activities
1,141,162
3,435,083
Investing activities
Purchase of tangible fixed assets
(631,515)
(664,912)
Proceeds on disposal of tangible fixed assets
397,948
16,000
Proceeds from other investments and loans
(827,964)
-
Interest received
-
3,179
Net cash used in investing activities
(1,061,531)
(645,733)
Financing activities
Repayment of borrowings
(3,948)
(989,545)
Repayment of bank loans
(584,556)
728,743
Payment of finance leases obligations
26,291
42,270
Dividends paid to equity shareholders
(200,000)
(400,000)
Net cash used in financing activities
(762,213)
(618,532)
Net (decrease)/increase in cash and cash equivalents
(682,582)
2,170,818
Cash and cash equivalents at beginning of year
3,432,200
1,261,382
Cash and cash equivalents at end of year
2,749,618
3,432,200
Relating to:
Cash at bank and in hand
2,779,306
3,432,200
Bank overdrafts included in creditors payable within one year
(29,688)
-
MINTON, TREHARNE & DAVIES LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2018
- 14 -
2018
2017
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
1,926,472
3,426,034
Interest paid
(85,596)
(117,440)
Income taxes paid
(187,301)
(307,984)
Net cash inflow from operating activities
1,653,575
3,000,610
Investing activities
Purchase of tangible fixed assets
(599,176)
(622,358)
Proceeds on disposal of tangible fixed assets
382,684
16,000
Proceeds from other investments and loans
(531,950)
-
Net cash used in investing activities
(748,442)
(606,358)
Financing activities
Repayment of borrowings
(3,948)
(989,545)
Repayment of bank loans
(584,556)
728,743
Payment of finance leases obligations
26,291
42,270
Dividends paid to equity shareholders
(200,000)
(400,000)
Net cash used in financing activities
(762,213)
(618,532)
Net increase in cash and cash equivalents
142,920
1,775,720
Cash and cash equivalents at beginning of year
2,160,652
384,932
Cash and cash equivalents at end of year
2,303,572
2,160,652
MINTON, TREHARNE & DAVIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2018
- 15 -
1
Accounting policies
Company information
Minton, Treharne & Davies Limited
(“the company”)
is a
private
limited company domiciled and incorporated in England and Wales.
The registered office is
Merton House, Croescadarn Close, Pentwyn, CARDIFF, South Glamorgan, UK, CF23 8HF.
The group consists of Minton, Treharne & Davies Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
-
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
-
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash
f
low and related notes and disclosures;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
-
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
1.2
Basis of consolidation
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date.
Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.
I
nvestments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
MINTON, TREHARNE & DAVIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
1
Accounting policies (Continued)
- 16 -
The consolidated financial statements incorporate those of Minton, Treharne & Davies Limited and all of its subsidiaries (ie entities that the
g
roup controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.
All financial statements are made up to 31 March 2018
.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the
g
roup.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates. In the group financial statements, associates are accounted for
using the equity method.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a
contractual arrangement are treated as joint ventures.
In the group financial statements, joint ventures are accounted for using the equity method.
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
Turnover represents amounts receivable for services and rechargeable disbursements net of VAT.
Fee income represents revenue earned under a wide variety of contracts to provide professional services. Revenue is recognised as earned when, and to the extent that, the company obtains the right to consideration in exchange for its performance under these contracts. It is measured at the fair value of the right to consideration, which represents amounts chargeable to clients, including expenses and disbursements but excluding value added tax.
Revenue is generally recognised as contract activity progresses so that for incomplete contracts it reflects the partial performance of the contractual obligations. For such contracts the amount of revenue reflects the accrual of the right to consideration by reference to the value of work performed.
Fee income that is contingent on events outside the control of the firm is recognised when the contingent event occurs.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
MINTON, TREHARNE & DAVIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
1
Accounting policies (Continued)
- 17 -
Tangible fixed assets are stated at cost or valuation less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Freehold buildings
2% on a straight line basis
Plant and machinery
10% - 35% on a reducing balance basis
Fixtures, fittings & equipment
20% on cost
Computer equipment
10% - 35% on a reducing balance basis
Motor vehicles
25% on a reducing balance basis
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
1.6
Fixed asset investments
Equity in
vest
ments are measured at fair value through profit or loss
,
except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably
,
which are recognised at cost less impairment until a reliable measure of fair value becomes available.
I
n the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the
group. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The
group
considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the
g
roup’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method.
Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the
parent c
ompany financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the
group
has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
MINTON, TREHARNE & DAVIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
1
Accounting policies (Continued)
- 18 -
1.7
Impairment of fixed assets
At each reporting
period
end date, the
group
reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
Cash and cash equivalents
Cash at bank and in hand
are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
m
ethod unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
MINTON, TREHARNE & DAVIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
1
Accounting policies (Continued)
- 19 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
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 group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans
are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
MINTON, TREHARNE & DAVIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
1
Accounting policies (Continued)
- 20 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the
group's contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
group’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date 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 is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset
if, and only if, there is
a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
MINTON, TREHARNE & DAVIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
1
Accounting policies (Continued)
- 21 -
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases,
including
any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
1.15
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.
2
Turnover and other revenue
An analysis of the group's turnover is as follows:
2018
2017
£
£
Turnover analysed by class of business
Consultancy services
15,948,591
16,512,047
MINTON, TREHARNE & DAVIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
2
Turnover and other revenue (Continued)
- 22 -
2018
2017
£
£
Other significant revenue
Interest income
-
3,179
Grants received
9,867
10,511
2018
2017
£
£
Turnover analysed by geographical market
UK
7,884,222
9,102,173
Europe
5,338,171
3,210,969
Rest of World
2,726,198
4,198,905
15,948,591
16,512,047
3
Operating profit
2018
2017
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
150,813
(440,156)
Government grants
(9,867)
(10,511)
Depreciation of owned tangible fixed assets
239,811
185,929
Depreciation of tangible fixed assets held under finance leases
62,977
53,189
Loss on disposal of tangible fixed assets
15,854
4,038
Operating lease charges
474,045
519,074
4
Auditor's remuneration
2018
2017
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
12,500
12,500
Audit of the financial statements of the company's subsidiaries
17,059
20,522
29,559
33,022
MINTON, TREHARNE & DAVIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
- 23 -
5
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2018
2017
2018
2017
Number
Number
Number
Number
Number of staff
149
143
113
120
Their aggregate remuneration comprised:
Group
Company
2018
2017
2018
2017
£
£
£
£
Wages and salaries
7,941,248
7,685,074
5,148,975
5,067,048
Social security costs
603,176
577,781
568,995
552,282
Pension costs
328,064
325,189
285,371
292,877
8,872,488
8,588,044
6,003,341
5,912,207
6
Directors' remuneration
2018
2017
£
£
Remuneration for qualifying services
481,564
410,025
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2017 - 2).
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2018
2017
£
£
Remuneration for qualifying services
260,855
201,456
7
Interest receivable and similar income
2018
2017
£
£
Interest income
Interest on bank deposits
-
3,179
MINTON, TREHARNE & DAVIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
7
Interest receivable and similar income (Continued)
- 24 -
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
-
3,179
8
Interest payable and similar expenses
2018
2017
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
74,231
108,926
Interest on finance leases and hire purchase contracts
11,365
8,514
85,596
117,440
9
Taxation
2018
2017
£
£
Current tax
UK corporation tax on profits for the current period
511,459
501,896
Foreign current tax on profits for the current period
(31,899)
-
Total current tax
479,560
501,896
Deferred tax
Origination and reversal of timing differences
11,258
1,996
Total tax charge
490,818
503,892
MINTON, TREHARNE & DAVIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
9
Taxation (Continued)
- 25 -
The actual charge for the year can be reconciled to the expected charge based on the profit or loss and the standard rate of tax as follows:
2018
2017
£
£
Profit before taxation
2,006,438
2,784,518
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2017: 20.00%)
381,223
556,904
Tax effect of expenses that are not deductible in determining taxable profit
19,761
72,142
Tax effect of income not taxable in determining taxable profit
(12,053)
(14,814)
Tax effect of utilisation of tax losses not previously recognised
(1,330)
-
Adjustments in respect of prior years
(5,916)
18,232
Group relief
(2,827)
-
Permanent capital allowances in excess of depreciation
(19,577)
(34,748)
Effect of overseas tax rates
80,989
(95,382)
Deferred tax adjustments in respect of prior years
-
1,996
Others
15,319
705
Tax rebates
35,229
(1,143)
Taxation charge
490,818
503,892
10
Dividends
2018
2017
£
£
Final paid
200,000
400,000
MINTON, TREHARNE & DAVIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
- 26 -
11
Tangible fixed assets
Group
Freehold buildings
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2017
8,885,084
3,374,808
96,998
14,869
347,433
12,719,192
Additions
332,572
230,428
16,397
11,755
40,363
631,515
Disposals
(420,742)
(16,975)
(10,816)
-
(50,995)
(499,528)
At 31 March 2018
8,796,914
3,588,261
102,579
26,624
336,801
12,851,179
Depreciation and impairment
At 1 April 2017
767,905
2,988,719
52,172
9,684
179,694
3,998,174
Depreciation charged in the year
46,842
143,361
58,256
5,182
49,147
302,788
Eliminated in respect of disposals
(42,074)
(4,678)
(7,849)
-
(31,125)
(85,726)
At 31 March 2018
772,673
3,127,402
102,579
14,866
197,716
4,215,236
Carrying amount
At 31 March 2018
8,024,241
460,859
-
11,758
139,085
8,635,943
At 31 March 2017
8,117,179
386,090
44,826
5,185
167,739
8,721,019
Company
Freehold buildings
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2017
8,885,085
3,318,381
337,689
12,541,155
Additions
328,385
230,428
40,363
599,176
Disposals
(420,742)
-
(50,995)
(471,737)
At 31 March 2018
8,792,728
3,548,809
327,057
12,668,594
Depreciation and impairment
At 1 April 2017
767,905
2,984,473
179,694
3,932,072
Depreciation charged in the year
46,842
143,361
41,706
231,909
Eliminated in respect of disposals
(42,074)
-
(31,125)
(73,199)
At 31 March 2018
772,673
3,127,834
190,275
4,090,782
Carrying amount
At 31 March 2018
8,020,055
420,975
136,782
8,577,812
At 31 March 2017
8,117,180
333,909
157,995
8,609,084
MINTON, TREHARNE & DAVIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
11
Tangible fixed assets (Continued)
- 27 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2018
2017
2018
2017
£
£
£
£
Plant and machinery
91,977
36,281
91,977
36,281
Motor vehicles
117,135
131,798
117,135
131,798
209,112
168,079
209,112
168,079
Depreciation charge for the year in respect of leased assets
62,977
53,189
62,977
53,189
12
Fixed asset investments
Group
Company
2018
2017
2018
2017
Notes
£
£
£
£
Investments in associates
13
249,560
249,560
305,250
305,250
Movements in fixed asset investments
Group
Shares in group undertakings
£
Cost or valuation
At 1 April 2017 & 31 March 2018
249,560
Carrying amount
At 31 March 2018
249,560
At 31 March 2017
249,560
MINTON, TREHARNE & DAVIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
12
Fixed asset investments (Continued)
- 28 -
Movements in fixed asset investments
Company
Shares in group undertakings
£
Cost or valuation
At 1 April 2017 & 31 March 2018
305,250
Carrying amount
At 31 March 2018
305,250
At 31 March 2017
305,250
13
Subsidiaries
Details of the company's subsidiaries at 31 March 2018 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
British Vapour Testing Limited
UK
Vapour Testing
Ordinary
100.00
Composite Inspection Limited
UK
Dormant
Ordinary
100.00
Martest Cambrian (Singapore) PTE
Singapore
Consulting, scientists, mariners and engineers
Ordinary
70.00
Minton Trehearne & Davies (Australia) PTY Ltd
Australia
Consulting
Ordinary
100.00
Minton, Trehearne & Davies (Singapore) PTE
Singapore
Consulting, scientists, mariners and engineers
Ordinary
100.00
Minton, Trehearne & Davies Holland BV
Holland
Consulting, scientists, mariners and engineers
Ordinary
100.00
Minton, Trehearne & Davies USA Inc
USA
Consulting, scientists, mariners and engineers
Ordinary
80.00
MTD Marine Surveys Limited
UK
Dormant
Ordinary
100.00
14
Financial instruments
Group
Company
2018
2017
2018
2017
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
5,757,919
5,084,836
3,831,517
3,407,885
Carrying amount of financial liabilities
Measured at amortised cost
3,733,823
4,642,238
5,450,532
6,475,885
MINTON, TREHARNE & DAVIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
- 29 -
15
Debtors
Group
Company
2018
2017
2018
2017
Amounts falling due within one year:
£
£
£
£
Trade debtors
6,090,560
6,733,590
3,356,660
4,513,016
Gross amounts owed by contract customers
2,268,380
1,483,310
1,424,749
1,120,993
Amounts owed by group undertakings
-
-
548,961
368,826
Other debtors
1,150,669
294,821
1,046,889
227,844
Prepayments and accrued income
27,805
47,862
22,062
37,446
9,537,414
8,559,583
6,399,321
6,268,125
16
Creditors: amounts falling due within one year
Group
Company
2018
2017
2018
2017
Notes
£
£
£
£
Bank loans and overdrafts
18
247,841
252,584
218,153
252,584
Obligations under finance leases
19
77,572
55,417
77,572
55,417
Other borrowings
18
-
3,948
-
3,948
Trade creditors
215,223
469,782
158,873
247,727
Amounts due to group undertakings
-
-
2,017,061
2,245,366
Amounts due to related parties
-
19,914
-
19,914
Corporation tax payable
1,358,791
1,133,399
709,171
581,634
Other taxation and social security
438,873
536,976
419,644
521,106
Other creditors
499,213
780,464
455,140
751,432
Accruals and deferred income
793,942
614,108
623,701
453,476
3,631,455
3,866,592
4,679,315
5,132,604
17
Creditors: amounts falling due after more than one year
Group
Company
2018
2017
2018
2017
Notes
£
£
£
£
Bank loans and overdrafts
18
1,817,274
2,367,399
1,817,274
2,367,399
Obligations under finance leases
19
82,758
78,622
82,758
78,622
Government grants
146,001
155,868
146,001
155,868
2,046,033
2,601,889
2,046,033
2,601,889
MINTON, TREHARNE & DAVIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
- 30 -
18
Loans and overdrafts
Group
Company
2018
2017
2018
2017
£
£
£
£
Bank loans
2,035,427
2,619,983
2,035,427
2,619,983
Bank overdrafts
29,688
-
-
-
Other loans
-
3,948
-
3,948
2,065,115
2,623,931
2,035,427
2,623,931
Payable within one year
247,841
256,532
218,153
256,532
Payable after one year
1,817,274
2,367,399
1,817,274
2,367,399
The long-term loans are secured by a first legal charge over the freehold property owned by the group.
19
Finance lease obligations
Group
Company
2018
2017
2018
2017
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
77,572
55,417
77,572
55,417
In two to five years
82,758
78,622
82,758
78,622
160,330
134,039
160,330
134,039
The finance lease creditors are secured upon the assets to which they relate. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
20
Deferred taxation
Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2018
2017
Group
£
£
Accelerated capital allowances
706,910
704,887
Tax losses
(54,655)
(63,627)
Retirement benefit obligations
(3,307)
(3,570)
648,948
637,690
MINTON, TREHARNE & DAVIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
20
Deferred taxation (Continued)
- 31 -
Liabilities
Liabilities
2018
2017
Company
£
£
Accelerated capital allowances
327,598
325,575
Tax losses
(54,655)
(63,627)
Retirement benefit obligations
(3,307)
(3,570)
269,636
258,378
Group
Company
2018
2018
Movements in the year:
£
£
Liability at 1 April 2017
637,690
258,378
Charge to profit or loss
11,258
11,258
Liability at 31 March 2018
648,948
269,636
21
Retirement benefit schemes
2018
2017
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
328,064
325,189
A
defined contribution pension scheme
is operated
for all qualifying employees.
The assets of the scheme are held separately from those of the group in an independently administered fund.
22
Share capital
Group and company
2018
2017
Ordinary share capital
£
£
Issued and fully paid
39,190 Class 'A' Ordinary Shares of £1 each
39,190
39,190
4,000 Class 'B' Ordinary Shares of £1 each
4,000
4,000
46,810 Class 'C' Ordinary Shares of £1 each
46,810
46,810
90,000
90,000
Preference share capital
Issued and fully paid
10,000 Class 'D' Ordinary Shares of £1 each
10,000
10,000
MINTON, TREHARNE & DAVIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
22
Share capital (Continued)
- 32 -
Both Ordinary and Preference shares carry full voting rights, full equity participation and full rights in respect of dividends.
23
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2018
2017
2018
2017
£
£
£
£
Within one year
204,146
175,686
68,379
95,830
Between two and five years
88,569
140,186
33,144
96,461
292,715
315,872
101,523
192,291
24
Cash generated from group operations
2018
2017
£
£
Profit for the year after tax
1,515,620
2,280,626
Adjustments for:
Taxation charged
490,818
503,892
Finance costs
85,596
117,440
Investment income
-
(3,179)
Loss on disposal of tangible fixed assets
15,854
4,038
Depreciation and impairment of tangible fixed assets
302,788
239,118
Movements in working capital:
(Increase)/decrease in debtors
(447,678)
737,319
(Decrease)/increase in creditors
(472,205)
2,390
(Decrease) in deferred income
(9,867)
(10,511)
Cash generated from operations
1,480,926
3,871,133
MINTON, TREHARNE & DAVIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
- 33 -
25
Cash generated from operations - company
2018
2017
£
£
Profit for the year after tax
1,440,731
1,536,472
Adjustments for:
Taxation charged
326,096
399,377
Finance costs
85,596
117,440
Loss on disposal of tangible fixed assets
15,854
4,038
Depreciation and impairment of tangible fixed assets
231,909
216,357
Movements in working capital:
Decrease/(increase) in debtors
400,755
(52,644)
(Decrease)/increase in creditors
(564,602)
1,215,505
(Decrease) in deferred income
(9,867)
(10,511)
Cash generated from operations
1,926,472
3,426,034
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