Company Registration No. 03547108 (England and Wales)
MERLIN ENERGY RESOURCES LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
PAGES FOR FILING WITH REGISTRAR
MERLIN ENERGY RESOURCES LIMITED
COMPANY INFORMATION
Directors
Fiona Lawrance
Dr Andrew Sims
Dr Philip Copestake
Dr William Wilks
Secretary
Dr Andrew Sims
Company number
03547108
Registered office
Newberry House
New Street
Ledbury
HR8 2EJ
Accountants
Kendall Wadley LLP
Granta Lodge
71 Graham Road
Malvern
Worcestershire
WR14 2JS
Bankers
NatWest
12 Broad Street
Hereford
HR4 9AH
MERLIN ENERGY RESOURCES LIMITED
CONTENTS
Page
Directors' report
1
Balance sheet
2 - 3
Statement of changes in equity
4
Notes to the financial statements
5 - 10
MERLIN ENERGY RESOURCES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2018
- 1 -
The directors present their annual report and financial statements for the year ended 31 December 2018.
Principal activities
The principal activity of the company continued to be that of the provision of exploration consultancy and data storage facilities for the oil exploration industry and associated business.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Fiona Lawrance
Dr Andrew Sims
Dr Philip Copestake
Dr William Wilks
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
By order of the board
..............................
..............................
Fiona Lawrance
Dr Andrew Sims
Secretary
Director
Date: .........................
2019-05-17
Date: .........................
2019-05-17
MERLIN ENERGY RESOURCES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2018
31 December 2018
- 2 -
2018
2017
Notes
£
£
£
£
Fixed assets
Tangible assets
3
562,426
590,230
Investments
4
227,537
278,755
789,963
868,985
Current assets
Stocks
2,429
4,968
Debtors
5
599,236
513,397
Cash at bank and in hand
629,214
1,096,545
1,230,879
1,614,910
Creditors: amounts falling due within one year
6
(537,350)
(846,081)
Net current assets
693,529
768,829
Total assets less current liabilities
1,483,492
1,637,814
Creditors: amounts falling due after more than one year
7
(150,405)
(300,810)
Provisions for liabilities
-
(2,251)
Net assets
1,333,087
1,334,753
Capital and reserves
Called up share capital
8
18,863
18,863
Revaluation reserve
282,369
292,261
Capital redemption reserve
9
31,137
31,137
Profit and loss reserves
1,000,718
992,492
Total equity
1,333,087
1,334,753
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 December 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
MERLIN ENERGY RESOURCES LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2018
31 December 2018
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 3 May 2019 and are signed on its behalf by:
Dr Andrew Sims
Director
Company Registration No. 03547108
MERLIN ENERGY RESOURCES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2018
- 4 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 January 2017
18,863
302,153
31,137
979,849
1,332,002
Year ended 31 December 2017:
Profit for the year
-
-
-
2,750
2,750
Transfers
-
(9,892)
-
9,892
-
Balance at 31 December 2017
18,863
292,261
31,137
992,492
1,334,753
Year ended 31 December 2018:
Loss for the year
-
-
-
(1,666)
(1,666)
Transfers
-
(9,892)
-
9,892
-
Balance at 31 December 2018
18,863
282,369
31,137
1,000,718
1,333,087
MERLIN ENERGY RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
- 5 -
1
Accounting policies
Company information
Merlin Energy Resources Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Newberry House, New Street, Ledbury, HR8 2EJ.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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
Turnover
Turnover represents amounts receivable for goods and services net of VAT. Turnover is recognised when the service or good is provided.
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
.
1.3
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.
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:
Land and buildings
25 years straight line
Plant and machinery
2 years straight line / 15% straight line
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
.
1.4
Impairment of fixed assets
At each reporting
period
end date, the
company
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.
MERLIN ENERGY RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
- 6 -
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.
1.5
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
1.6
Cash at bank and in hand
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.
1.7
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 balance sheet 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.
MERLIN ENERGY RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
- 7 -
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 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
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 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 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.
1.10
Retirement benefits
The pension costs charged in the financial statements represent the contributions payable by the company in the year.
1.11
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
MERLIN ENERGY RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
- 8 -
1.12
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
Employees
The average monthly number of persons (including directors) employed by the company during the year was 15 (2017 - 15).
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2018
675,000
302,644
977,644
Additions
-
9,699
9,699
Disposals
-
(3,846)
(3,846)
At 31 December 2018
675,000
308,497
983,497
Depreciation and impairment
At 1 January 2018
99,000
288,414
387,414
Depreciation charged in the year
27,000
10,503
37,503
Eliminated in respect of disposals
-
(3,846)
(3,846)
At 31 December 2018
126,000
295,071
421,071
Carrying amount
At 31 December 2018
549,000
13,426
562,426
At 31 December 2017
576,000
14,230
590,230
The Colwall freehold land and buildings were valued on an open market basis by John Goodwin, an independent external Chartered Surveyor on 27 May 2014. The directors believe this valuation is a fair value of the property at the year end. The historic cost of this freehold property is £157,702.
Newberry House was valued on an open market basis by John Goodwin, an independent external Chartered Surveyor on 23 May 2014. The directors believe this valuation is a fair value of the property at the year end. The historic cost of the property is £295,147.
MERLIN ENERGY RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
- 9 -
4
Fixed asset investments
2018
2017
£
£
Investments
227,537
278,755
Other investments
-
-
Loans
-
-
227,537
278,755
Movements in fixed asset investments
Investments other than loans
£
Cost or valuation
At 1 January 2018
278,755
Valuation changes
(10,624)
Disposals
(40,594)
At 31 December 2018
227,537
Carrying amount
At 31 December 2018
227,537
At 31 December 2017
278,755
5
Debtors
2018
2017
Amounts falling due within one year:
£
£
Trade debtors
534,182
352,184
Other debtors
62,644
161,213
596,826
513,397
Deferred tax asset
2,410
-
599,236
513,397
MERLIN ENERGY RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
(Continued)
- 10 -
6
Creditors: amounts falling due within one year
2018
2017
£
£
Trade creditors
38,356
71,172
Corporation tax
16,625
20,559
Other taxation and social security
24,809
55,068
Other creditors
176,244
411,082
Accruals and deferred income
281,316
288,200
537,350
846,081
7
Creditors: amounts falling due after more than one year
2018
2017
£
£
Other creditors
150,405
300,810
8
Called up share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
18,863 Ordinary shares of £1 each
18,863
18,863
9
Capital redemption reserve
2018
2017
£
£
At beginning and end of year
31,137
31,137
2018-12-31
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false
CCH Software
CCH Accounts Production 2019.100
No description of principal activity
03 May 2019
Dr Andrew Sims
Dr Andrew Sims
Dr Philip Copestake
Dr Andrew Sims
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