Company Registration No. 01621476 (England and Wales)
MARTEK CONTRACTS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
PAGES FOR FILING WITH REGISTRAR
MARTEK CONTRACTS LIMITED
CONTENTS
Page
Statement of financial position
1
Statement of changes in equity
2
Notes to the financial statements
3 - 12
MARTEK CONTRACTS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2021
31 March 2021
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
6
172,779
223,152
Current assets
Stocks
7
261,349
180,821
Debtors
8
1,194,125
1,835,032
Cash at bank and in hand
1,074,096
14,333
2,529,570
2,030,186
Creditors: amounts falling due within one year
9
(963,632)
(908,963)
Net current assets
1,565,938
1,121,223
Total assets less current liabilities
1,738,717
1,344,375
Creditors: amounts falling due after more than one year
10
(841,464)
(220,896)
Provisions for liabilities
Deferred tax liability
13
32,167
39,069
(32,167)
(39,069)
Net assets
865,086
1,084,410
Capital and reserves
Called up share capital
15
74
74
Capital redemption reserve
33
33
Profit and loss reserves
864,979
1,084,303
Total equity
865,086
1,084,410
The directors of the company have elected not to include a copy of the income statement within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 17 March 2022 and are signed on its behalf by:
W D Galloway
Director
Company Registration No. 01621476
MARTEK CONTRACTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2021
- 2 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2019
74
33
1,278,919
1,279,026
Year ended 31 March 2020:
Loss and total comprehensive income for the year
-
-
(194,616)
(194,616)
Balance at 31 March 2020
74
33
1,084,303
1,084,410
Year ended 31 March 2021:
Loss and total comprehensive income for the year
-
-
(78,824)
(78,824)
Dividends
-
-
(140,500)
(140,500)
Balance at 31 March 2021
74
33
864,979
865,086
Capital redemption reserve
This reserve records the nominal value of shares repurchased by the company.
Profit and loss reserves
Profit and loss account include all current and prior period retained profit and losses.
MARTEK CONTRACTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
- 3 -
1
Accounting policies
Company information
Martek Contracts Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
High Point Mill, King Henrys Drive, New Addington, Croydon, Surrey, CRO 0AE.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The financial statements have been prepared on the going concern basis which assumes that the company will continue in operational existence for period of at least 12 months following the approval of these financial statements.
true
Whilst the economy is currently facing unprecedented circumstances due to the impacts of Covid-19, the company continue to generate revenues as
we have put measures in in place
. Furthermore, the director
s
consider the company to be able to withstand potential impacts on operations due to the
cash
reserves of the company, available financial headroom, and the government support packages on offer. As such, the directors consider it appropriate to prepare the financial statements on the going concern basis.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that
it is probable will be
recover
ed
.
1.4
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. 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.
MARTEK CONTRACTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 4 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
over the life of the lease.
Plant and equipment
over 3 to 10 years straight line.
Motor vehicles
25% straight line.
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, of if there is an indication of a significant change since the last reporting date.
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 credited or charged to profit or loss
.
1.5
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.6
Cash and cash equivalents
Cash and cash equivalents
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.
1.7
Financial instruments
The company 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 company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
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
method 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.
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 company after deducting all of its liabilities.
MARTEK CONTRACTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, 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. A
m
ounts 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.
1.8
Equity instruments
Equity instruments issued by the company 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 company.
1.9
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
income statement
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
company’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
income statement
, 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 when the
company
has 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.
MARTEK CONTRACTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 6 -
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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 statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss 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
profit or loss
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
s
asset are consumed.
1.13
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not
recognised until there is reasonable assurance that the company will comply with the conditions attaching
to them and the grants will be received.
Government grants are recognised using the accrual model and the performance model.
Under the accrual model, government grants relating to revenue are recognised on a systematic basis over
the periods in which the company recognises the related costs for which the grant is intended to
compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the
purpose of giving immediate financial support to the entity with no future related costs are recognised in
income in the period in which it becomes receivable.
1.14
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
in the period
are included in profit or loss.
MARTEK CONTRACTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 7 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Impairment of debtors
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of
trade and other debtors, management considers factors including the current credit rating of the debtors, the ageing
profile of debtors and historical experience. See note
13
for the net carrying amount of the debtors and associated
impairment provision.
Depreciation and residual values
The Directors have reviewed the asset lives and associated residual values of all fixed asset classes, and in particular,
the useful economic life and residual values of fixtures and fittings, and buildings and have concluded that asset lives
and residual values are appropriate.
3
Auditor's remuneration
2021
2020
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
6,500
6,500
For other services
All other non-audit services
18,500
22,500
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Totals
56
65
MARTEK CONTRACTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 8 -
5
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
96,821
181,058
Company pension contributions to defined contribution schemes
1,300
1,291
98,121
182,349
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2020 - 1).
6
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2020
158,270
508,282
50,250
716,802
Disposals
(92,278)
(92,278)
At 31 March 2021
158,270
416,004
50,250
624,524
Depreciation and impairment
At 1 April 2020
158,270
328,052
7,328
493,650
Depreciation charged in the year
29,329
12,562
41,891
Eliminated in respect of disposals
(83,796)
(83,796)
At 31 March 2021
158,270
273,585
19,890
451,745
Carrying amount
At 31 March 2021
142,419
30,360
172,779
At 31 March 2020
180,230
42,922
223,152
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2021
2020
£
£
Plant and equipment
108,715
125,945
Motor vehicles
30,960
42,922
139,675
168,867
The obligations under finance leases are secured against the items of plant
&
machin
ery and motor vechiles
to which they
relate .
MARTEK CONTRACTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 9 -
7
Stocks
2021
2020
£
£
Finished goods and goods for resale
261,349
180,821
8
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
363,382
709,276
Amounts owed by contract customers
540,000
922,000
Corporation tax recoverable
32,661
35,678
Other debtors
141,554
62,654
Prepayments and accrued income
96,368
51,184
1,173,965
1,780,792
2021
2020
Amounts falling due after more than one year:
£
£
Other debtors
20,160
54,240
Total debtors
1,194,125
1,835,032
The balance of trade debtors shown above is net of specific provisions of £
19,090
(20
20
- £nil) in respect of impairment
for bad debts.
Included in
other debtors
is an amount of £
44,520 (2020 - £85,520)
due
from shareholders
of the company. The total amount o
f
£
24,360
(2020- £
31,280
) is payable within one year
. This loan carries
fixed interest at
3.5%
.
9
Creditors: amounts falling due within one year
2021
2020
Notes
£
£
Bank loans and overdrafts
11
59,259
140,154
Obligations under finance leases
12
46,173
46,173
Other borrowings
11
46,000
Trade creditors
423,083
416,848
Corporation tax
4,136
Other taxation and social security
265,286
170,411
Other creditors
51,333
60,613
Accruals and deferred income
72,498
70,628
963,632
908,963
MARTEK CONTRACTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 10 -
10
Creditors: amounts falling due after more than one year
2021
2020
Notes
£
£
Bank loans and overdrafts
11
740,741
Obligations under finance leases
12
24,723
70,896
Other borrowings
11
76,000
150,000
841,464
220,896
11
Loans and overdrafts
2021
2020
£
£
Bank loans
800,000
15,398
Bank overdrafts
124,756
Other loans
122,000
150,000
922,000
290,154
Payable within one year
105,259
140,154
Payable after one year
816,741
150,000
During the year the entity received a bank loan of £800,000 as part of The Coronavirus Business Interruption Loan Scheme (CBILS). It has a fixed annual interest rate of 2.62% over the base interest rate and both principal and interest accruing are repayable on a monthly basis commencing 12 December 2021 with the final instalment due to be repaid by 12 May 2026.
The company has access to an overdraft credit facility of £300,000. As at year end the drawn down balance was £nil. The bank has fixed and floating charges over the company’s assets to secure the bank loan and overdraft.
Other loans
represent amount due
to
director
s
of the company. The total amount owing at the year end was £122,000 (2020 - £150,000)
on which £46,000 (2020- £nil) is payable within one year. This is unsecure and interest free loan.
12
Finance lease obligations
2021
2020
Future minimum lease payments due under finance leases:
£
£
Within one year
46,173
46,173
In two to five years
24,723
70,896
70,896
117,069
The loans in respect of the finance lease agreements are secured against the assets to which they relate.
MARTEK CONTRACTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 11 -
13
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2021
2020
Balances:
£
£
Accelerated capital allowances
32,167
39,069
2021
Movements in the year:
£
Liability at 1 April 2020
39,069
Credit to profit or loss
(6,902)
Liability at 31 March 2021
32,167
The deferred tax liability set out above is expected to reverse within 1 - 4 years and relates to accelerated capital allowances that are expected to mature within the same period.
14
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
35,576
45,789
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
15
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
7,444
7,444
74
74
16
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Daniel Faust FCCA and the auditor was FLB Accountants LLP.
MARTEK CONTRACTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 12 -
17
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2021
2020
£
£
Within one year
171,732
172,494
Between two and five years
645,802
652,998
In over five years
960,000
1,120,000
1,777,534
1,945,492
18
Related party transactions
The company was charged rent of £160,000 (2020 - £200,000) by the company's pension scheme during the year.
2021-03-31
2020-04-01
false
17 March 2022
CCH Software
CCH Accounts Production 2021.300
No description of principal activity
This audit opinion is unqualified
W D Galloway
S A Ivin
M S Preen
W D Galloway
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