Registration number:
for the Year Ended
Manex Accountants Ltd
Chartered Accountants and Statutory Auditors
9 Castle Court 2
Castlegate Way
Dudley
West Midlands
DY1 4RD
M P J Enterprises Ltd
Contents
Company Information |
|
Strategic Report |
|
Director's Report |
|
Statement of Director's Responsibilities |
|
Independent Auditor's Report |
|
Income Statement |
|
Statement of Changes in Equity |
|
Statement of Financial Position |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
M P J Enterprises Ltd
Company Information
Directors |
|
Company secretary |
|
Registered office |
|
Auditors |
|
M P J Enterprises Ltd
Strategic Report for the Year Ended 31 December 2015
The Director presents his strategic report for the year ended 31 December 2015.
Principal activity
The principal activity of the company is the operation of a chain of limited menu quick service restaurants.
Fair review of the business
The results for the year end and financial position are shown in the annexed financial statements. As operators of a chain of five McDonald's restaurants we consider our key performance indicators are turnover and gross profit. The period ended 31 December 2015 has returned satisfactory results with turnover increasing by 7.06% and gross profit remaining consistent with the previous year. As for many businesses we believe the trading environment in which we operate to be challenging. However the company remains optimistic and has continued it's reinvestment with a major refurbishment at one of our restaurants during the year.
Principal risks and uncertainties
The management of the business and the nature of the company's strategy are subject to a number of risks. The director is of the opinion that a thorough risk management process is adopted which involves the formal review of all the risks identified. Where possible, processes are in place to monitor and mitigate such risks.
As an operator of a McDonald's restaurant franchise a lot of the main risks (food cost inflation, utility prices, wage cost inflation and competition) are managed by our franchisor.
Approved by the Board on
.........................................
M P Jarrett
Director
M P J Enterprises Ltd
Director's Report for the Year Ended 31 December 2015
The Director presents his report and the financial statements for the year ended 31 December 2015.
Directors of the Company
The director who held office during the year was as follows:
Financial instruments
Objectives and policies
The company's principal financial instruments comprise cash and bank loans. The main purpose of these financial instruments is to raise finance for the company's operations. The company does not enter into derivative transactions. It is, and has been throughout the period under review, the company's policy that no trading in financial instruments shall be undertaken.
Price risk, credit risk, liquidity risk and cash flow risk
The main risks arising from the company's financial instruments are interest risk and liquidity risk. The board reviews and agrees policies for managing each of these risks and they are summarised below.
Interest rate risk
The company's exposure to market risk for changes in interest rates is limited to bank loans. The additional requirement for medium to long term debt will be reviewed by the directors based on the company's forecast requirements.
Liquidity risk
The company's objective is to maintain a balance between continuity of funding and flexibility through the use of cash and bank loans.
Employment of disabled persons
Employee involvement
Disclosure of information to the auditors
Reappointment of auditors
The auditors Manex Accountants Ltd are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Approved by the Board on
M P J Enterprises Ltd
Director's Report for the Year Ended 31 December 2015
.........................................
M P Jarrett
Director
M P J Enterprises Ltd
Statement of Director's Responsibilities
Company law requires the
Director
to prepare financial statements for each financial year. Under that law the
Director
has
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
Director
must not approve the financial statements unless
he is
satisfied that they give a true and fair view of the state of affairs of the
Company
and of the
profit or loss
of the
Company
for that period. In preparing these financial statements, the
Director
is
required to:
•
select suitable accounting policies and apply them consistently;
•
make judgements and accounting estimates that are reasonable and prudent;
•
state whether applicable UK Accounting Standards has been followed, subject to any material departures disclosed and explained in the financial statements; and
•
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
Company
will continue in business.
The
Director
is
responsible for keeping adequate accounting records that are sufficient to show and explain the
Company
's transactions and disclose with reasonable accuracy at any time the financial position of the
Company
and enable
him
to ensure that the financial statements comply with the Companies Act 2006.
He is
also responsible for safeguarding the assets of the
Company
and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
M P J Enterprises Ltd
Independent Auditor's Report
We have audited the financial statements of M P J Enterprises Ltd for the year ended 31 December 2015, set out on pages 8 to 21. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
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.
Respective responsibilities of Directors and auditor
Scope of the audit of the financial statements
Opinion on the financial statements
In our opinion the financial statements:
|
|
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Strategic Report and Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
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, or returns adequate for our audit have not been received from branches not visited by us; or
•
the financial statements are not in agreement with the accounting records and returns; or
•
certain disclosures of
Director
s’ remuneration specified by law are not made; or
•
we have not received all the information and explanations we require for our audit.
M P J Enterprises Ltd
Independent Auditor's Report
......................................
For and on behalf of
9 Castle Court 2
Castlegate Way
West Midlands
DY1 4RD
M P J Enterprises Ltd
Income Statement for the Year Ended 31 December 2015
Note |
2015 |
2014 |
|
Turnover |
|
|
|
Raw materials and consumables used |
( |
( |
|
Employee benefits expense |
( |
( |
|
Depreciation and amortisation expense |
( |
( |
|
Other expenses |
( |
( |
|
Operating profit |
|
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar charges |
( |
( |
|
(29,118) |
(33,651) |
||
Profit before tax |
|
|
|
Taxation |
( |
( |
|
Profit for the year |
|
|
The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
M P J Enterprises Ltd
Statement of Changes in Equity for the Year Ended 31 December 2015
Share capital |
Profit and loss account |
Total |
|
At 1 January 2015 |
|
|
|
Profit for the year |
- |
|
|
Total comprehensive income |
- |
|
|
Dividends |
- |
( |
( |
At 31 December 2015 |
|
|
|
Share capital |
Profit and loss account |
Total |
|
At 1 January 2014 |
|
|
|
Profit for the year |
- |
|
|
Total comprehensive income |
- |
|
|
Dividends |
- |
( |
( |
At 31 December 2014 |
|
|
|
M P J Enterprises Ltd
(Registration number: 04026818)
Statement of Financial Position as at 31 December 2015
Note |
2015 |
2014 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
Other financial assets |
6,250 |
6,250 |
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Profit and loss account |
|
|
|
Total equity |
|
|
Approved and authorised by the
.........................................
M P Jarrett
Director
M P J Enterprises Ltd
Statement of Cash Flows for the Year Ended 31 December 2015
Note |
2015 |
2014 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
(Increase)/decrease in stocks |
( |
|
|
(Increase)/decrease in trade debtors |
( |
|
|
Increase in trade creditors |
|
|
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Repayment of bank borrowing |
(333,355) |
(325,838) |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net increase in cash and cash equivalents |
|
|
|
Cash and cash equivalents at 1 January |
|
|
|
Cash and cash equivalents at 31 December |
746,955 |
703,490 |
M P J Enterprises Ltd
Notes to the Financial Statements for the Year Ended 31 December 2015
General information |
The company is a private company limited by share capital incorporated in England.
The address of its registered office is:
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
Basis of preparation
Going concern
The financial statements have been prepared on a going concern basis.
Revenue recognition
Tax
M P J Enterprises Ltd
Notes to the Financial Statements for the Year Ended 31 December 2015
Tangible assets
Depreciation
Asset class |
Depreciation method and rate |
Plant and equipment |
|
Office equipment |
|
Motor vehicles |
|
Goodwill
Intangible assets
Amortisation
Asset class |
Amortisation method and rate |
Licence fees |
|
Stamp duty |
|
Goodwill |
|
M P J Enterprises Ltd
Notes to the Financial Statements for the Year Ended 31 December 2015
Cash and cash equivalents
Stocks
Trade creditors
Borrowings
Share capital
Dividends
Defined contribution pension obligation
M P J Enterprises Ltd
Notes to the Financial Statements for the Year Ended 31 December 2015
Revenue |
The analysis of the company's revenue for the year from continuing operations is as follows:
2015 |
2014 |
|
Sale of goods |
|
|
Rendering of services |
|
|
|
|
Operating profit |
Arrived at after charging/(crediting)
2015 |
2014 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Operating lease expense - property |
|
|
Auditor's remuneration - The audit of the company's annual accounts |
1,755 |
1,675 |
Other interest receivable and similar income |
2015 |
2014 |
|
Interest income on bank deposits |
|
|
Interest payable and similar charges |
2015 |
2014 |
|
Interest on bank overdrafts and borrowings |
|
|
M P J Enterprises Ltd
Notes to the Financial Statements for the Year Ended 31 December 2015
Staff costs |
The aggregate payroll costs (including director's remuneration) were as follows:
2015 |
2014 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Other short-term employee benefits |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
|
|
|
|
The average number of persons employed by the company (including the director) during the year, analysed by category was as follows:
2015 |
2014 |
|
Production |
|
|
Administration and support |
|
|
|
|
Directors' remuneration |
The director's remuneration for the year was as follows:
2015 |
2014 |
|
Remuneration |
|
|
Auditors' remuneration |
2015 |
2014 |
|
Audit of the financial statements |
|
|
M P J Enterprises Ltd
Notes to the Financial Statements for the Year Ended 31 December 2015
Taxation |
Tax charged/(credited) in the income statement
2015 |
2014 |
|
Current taxation |
||
UK corporation tax |
|
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
( |
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2014 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2015 |
2014 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Tax increase (decrease) from effect of capital allowances and depreciation |
|
|
Total tax charge |
|
|
Deferred tax
Deferred tax assets and liabilities
2015 |
Liability |
Accelerated capital allowances |
|
2014 |
Liability |
Accelerated capital allowances |
|
M P J Enterprises Ltd
Notes to the Financial Statements for the Year Ended 31 December 2015
Intangible assets |
Goodwill |
Licence fees |
Stamp duty |
Total |
|
Cost or valuation |
||||
At 1 January 2015 |
|
|
|
|
At 31 December 2015 |
|
|
|
|
Amortisation |
||||
At 1 January 2015 |
|
|
|
|
Amortisation charge |
|
|
|
|
At 31 December 2015 |
|
|
|
|
Carrying amount |
||||
At 31 December 2015 |
|
|
|
|
At 31 December 2014 |
|
|
|
|
Tangible assets |
Office equipment |
Motor vehicles |
Plant and equipment |
Total |
|
Cost or valuation |
||||
At 1 January 2015 |
|
|
|
|
Additions |
- |
- |
|
|
At 31 December 2015 |
|
|
|
|
Depreciation |
||||
At 1 January 2015 |
|
|
|
|
Charge for the year |
|
|
|
|
At 31 December 2015 |
|
|
|
|
Carrying amount |
||||
At 31 December 2015 |
|
|
|
|
At 31 December 2014 |
|
|
|
|
Other financial assets (current and non-current) |
2015 |
2014 |
|
Non-current financial assets |
||
Financial assets at cost less impairment |
|
|
M P J Enterprises Ltd
Notes to the Financial Statements for the Year Ended 31 December 2015
Stocks |
2015 |
2014 |
|
Other inventories |
|
|
Debtors |
2015 |
2014 |
|
Other debtors |
|
|
Prepayments |
|
|
Total current trade and other debtors |
|
|
Cash and cash equivalents |
2015 |
2014 |
|
Cash on hand |
|
|
Cash at bank |
|
|
Short-term deposits |
|
|
|
|
Creditors |
Note |
2015 |
2014 |
|
Due within one year |
|||
Loans and borrowings |
|
|
|
Trade creditors |
|
|
|
Social security and other taxes |
|
|
|
Other payables |
|
|
|
Accrued expenses |
|
|
|
Income tax liability |
7,527 |
95,858 |
|
|
|
||
Due after one year |
|||
Loans and borrowings |
|
|
Deferred tax and other provisions |
Deferred tax |
Total |
|
At 1 January 2015 |
|
|
Additional provisions |
|
|
At 31 December 2015 |
|
|
|
M P J Enterprises Ltd
Notes to the Financial Statements for the Year Ended 31 December 2015
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Share capital |
Allotted, called up and fully paid shares
2015 |
2014 |
|||
No. |
£ |
No. |
£ |
|
|
|
100 |
|
100 |
Loans and borrowings |
2015 |
2014 |
|
Non-current loans and borrowings |
||
Bank borrowings |
|
|
2015 |
2014 |
|
Current loans and borrowings |
||
Bank borrowings |
|
|
Dividends |
2015 |
2014 |
|
£ |
£ |
|
Interim dividend of £
|
250,000 |
200,000 |
M P J Enterprises Ltd
Notes to the Financial Statements for the Year Ended 31 December 2015
Related party transactions |
Transactions with directors |
2015 |
At 1 January 2015 |
Advances to directors |
Repayments by director |
Other payments made to company by director |
Written off |
Waived |
At 31 December 2015 |
|
M P Jarrett |
||||||||
|
11,952 |
|
- |
- |
- |
- |
|
|
2014 |
At 1 January 2014 |
Advances to directors |
Repayments by director |
Other payments made to company by director |
Written off |
Waived |
At 31 December 2014 |
|
M P Jarrett |
||||||||
|
62,106 |
- |
( |
- |
- |
- |
|
|
Transition to FRS 102 |