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REGISTERED NUMBER:
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STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31ST MARCH 2019 |
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FOR |
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MARK'S ELECTRICAL LIMITED |
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REGISTERED NUMBER:
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STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31ST MARCH 2019 |
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FOR |
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MARK'S ELECTRICAL LIMITED |
MARK'S ELECTRICAL LIMITED (REGISTERED NUMBER: 04463433) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST MARCH 2019 |
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Page |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Director | 3 |
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Report of the Independent Auditors | 5 |
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Income Statement | 8 |
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Other Comprehensive Income | 9 |
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Balance Sheet | 10 |
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Statement of Changes in Equity | 11 |
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Cash Flow Statement | 12 |
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Notes to the Cash Flow Statement | 13 |
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Notes to the Financial Statements | 14 |
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MARK'S ELECTRICAL LIMITED |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 31ST MARCH 2019 |
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DIRECTOR: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Chartered Accountants & Statutory Auditor |
Portland House |
11-13 Station Road |
Kettering |
Northamptonshire |
NN15 7HH |
MARK'S ELECTRICAL LIMITED (REGISTERED NUMBER: 04463433) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST MARCH 2019 |
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The director presents his strategic report for the year ended 31st March 2019. |
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The principal activity of the company throughout the current and previous year was that of the supply of domestic |
electrical appliances and consumer electronics from our base in Leicester. In the second half of the year we |
transferred our showroom operation from King Richards Road to our new purpose-built showroom in Boston |
Road. The company also expanded its range of products by offering bespoke high end kitchens from the same |
facility under the Kitchens By Mark's Electrical brand. |
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REVIEW OF BUSINESS |
The company is pleased to report on a successful year within our new facility, with an increase in pre-tax profit of |
203% despite only a small growth in turnover of 2.3%. This year has been a year of consolidation since the move |
to our new facility, to ensure we have the correct infrastructure for future growth and development of our |
business. |
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PRINCIPAL RISKS AND UNCERTAINTIES |
As for many businesses of this size, the business environment in which the company operates continues to be |
challenging. The domestic appliance market in the UK is highly competitive with the major online retailers |
continuing to dominate the market. The level of uncertainty regarding Brexit has and will continue to affect |
consumer spending patterns and overall consumer confidence. |
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FINANCIAL KEY PERFORMANCE INDICATORS |
The key performance indicators which are considered to communicate the financial performance of the company |
as a whole are turnover, gross margin percentage and profit before tax as a percentage of turnover. These have |
all improved year on year by 2.3%, 2.5% and 3% respectively. The company has also, in the year, adopted |
additional key performance indicators such as Average Order Value, Transport Costs Per Delivery, Inventory |
Turns and Sales Channel splits. |
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FUTURE DEVELOPMENTS |
There have been no significant events in the months since this report was completed. The new Kitchen By Mark's |
Electrical brand is developing well with sales expected to achieve budgeted levels in the year. |
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ON BEHALF OF THE BOARD: |
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MARK'S ELECTRICAL LIMITED (REGISTERED NUMBER: 04463433) |
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REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31ST MARCH 2019 |
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The director presents his report with the financial statements of the company for the year ended 31st March 2019. |
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DIVIDENDS |
The total distribution of dividends for the year ended 31st March 2019 will be £
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EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
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DIRECTOR |
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STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial |
statements in accordance with applicable law and regulations. |
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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: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
company will continue in business. |
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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. |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies |
Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have |
taken as a director in order to make himself aware of any relevant audit information and to establish that the |
company's auditors are aware of that information. |
MARK'S ELECTRICAL LIMITED (REGISTERED NUMBER: 04463433) |
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REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31ST MARCH 2019 |
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AUDITORS |
The auditors, Bewers Turner & Co LLP, are deemed to be re-appointed in accordance with an elective resolution |
made under section 386 of the Companies Act 1985 which continues in force under the Companies Act 2006. |
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ON BEHALF OF THE BOARD: |
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MARK'S ELECTRICAL LIMITED |
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Opinion |
We have audited the financial statements of Mark's Electrical Limited (the 'company') for the year ended |
31st March 2019 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, |
Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 |
Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' |
(United Kingdom Generally Accepted Accounting Practice). |
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In our opinion the financial statements: |
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give a true and fair view of the state of the company's affairs as at 31st March 2019 and of its profit for the year
then ended; |
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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. |
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Basis for opinion |
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 Auditors' 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. |
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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: |
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the director's use of the going concern basis of accounting in the preparation of the financial statements is not
appropriate; or |
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the director has not disclosed in the financial statements any identified material uncertainties that may cast
significant doubt about the 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. |
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Other information |
The director is responsible for the other information. The other information comprises the information in the |
Strategic Report and the Report of the Director, but does not include the financial statements and our Report of |
the Auditors thereon. |
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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. |
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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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MARK'S ELECTRICAL LIMITED |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
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the information given in the Strategic Report and the Report of the Director for the financial year for which the
financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal
requirements. |
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Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the |
audit, we have not identified material misstatements in the Strategic Report or the Report of the Director. |
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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: |
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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. |
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Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is |
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 director determines necessary to enable the preparation of financial |
statements that are free from material misstatement, whether due to fraud or error. |
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In preparing the financial statements, the director is responsible for assessing the 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 director either intends to liquidate the company or to cease operations, or has no |
realistic alternative but to do so. |
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Auditors' 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 a Report of the Auditors 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. |
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A further description of our responsibilities for the audit of the financial statements is located on the Financial |
Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report |
of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MARK'S ELECTRICAL LIMITED |
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Use of our report |
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 a Report of the Auditors 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. |
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for and on behalf of
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Chartered Accountants & Statutory Auditor |
Portland House |
11-13 Station Road |
Kettering |
Northamptonshire |
NN15 7HH |
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MARK'S ELECTRICAL LIMITED (REGISTERED NUMBER: 04463433) |
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INCOME STATEMENT |
FOR THE YEAR ENDED 31ST MARCH 2019 |
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2019 | 2018 |
Notes | £ | £ | £ | £ |
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TURNOVER | 3 |
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Cost of sales |
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GROSS PROFIT |
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Distribution costs |
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Administrative expenses |
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6,130,099 | 6,083,325 |
1,394,420 | 503,688 |
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Other operating income |
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OPERATING PROFIT | 5 |
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Gain on revaluation of |
investments | 106,905 | 60,895 |
1,527,225 | 566,883 |
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Interest payable and similar expenses | 6 |
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PROFIT BEFORE TAXATION |
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Tax on profit | 7 |
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PROFIT FOR THE FINANCIAL YEAR |
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MARK'S ELECTRICAL LIMITED (REGISTERED NUMBER: 04463433) |
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OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31ST MARCH 2019 |
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2019 | 2018 |
Notes | £ | £ |
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PROFIT FOR THE YEAR |
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OTHER COMPREHENSIVE INCOME |
Fair value of freehold property |
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Income tax relating to other
comprehensive income |
( |
) |
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OTHER COMPREHENSIVE INCOME FOR
THE YEAR, NET OF INCOME TAX |
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TOTAL COMPREHENSIVE INCOME FOR
THE YEAR |
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MARK'S ELECTRICAL LIMITED (REGISTERED NUMBER: 04463433) |
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BALANCE SHEET |
31ST MARCH 2019 |
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2019 | 2018 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
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Investments | 10 |
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CURRENT ASSETS |
Stocks | 11 |
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Debtors | 12 |
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Cash in hand |
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CREDITORS |
Amounts falling due within one year | 13 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
14 |
( |
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( |
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PROVISIONS FOR LIABILITIES | 19 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 20 |
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Fair value reserve | 21 |
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Retained earnings | 21 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the director on
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MARK'S ELECTRICAL LIMITED (REGISTERED NUMBER: 04463433) |
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STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST MARCH 2019 |
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Called up | Fair |
share | Retained | value | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
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Balance at 1st April 2017 |
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Changes in equity |
Dividends | - | ( |
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Total comprehensive income | - |
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Reserve transfer | - | (49,325 | ) | 49,325 | - |
Balance at 31st March 2018 |
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Changes in equity |
Dividends | - | ( |
) | - | ( |
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Total comprehensive income | - |
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Reserve transfer | - | (668,270 | ) | 668,270 | - |
Balance at 31st March 2019 |
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MARK'S ELECTRICAL LIMITED (REGISTERED NUMBER: 04463433) |
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CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST MARCH 2019 |
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2019 | 2018 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
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Interest paid | ( |
) | ( |
) |
Interest element of hire purchase
payments paid |
( |
) |
( |
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Tax paid | ( |
) | ( |
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Net cash from operating activities |
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Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
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Sale of tangible fixed assets |
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Net cash from investing activities | ( |
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Cash flows from financing activities |
New loans in year |
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Loan repayments in year | ( |
) | ( |
) |
Capital repayments in year | ( |
) | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
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Increase in cash and cash equivalents |
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Cash and cash equivalents at
beginning of year |
2 |
(709,441 |
) |
(1,007,973 |
) |
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Cash and cash equivalents at end of
year |
2 |
( |
) |
( |
) |
MARK'S ELECTRICAL LIMITED (REGISTERED NUMBER: 04463433) |
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NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST MARCH 2019 |
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1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2019 | 2018 |
£ | £ |
Profit before taxation |
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Depreciation charges |
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Loss on disposal of fixed assets |
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Gain on revaluation of fixed assets | (106,905 | ) | (60,895 | ) |
Finance costs | 81,872 | 89,167 |
1,664,640 | 739,688 |
Increase in stocks | ( |
) | ( |
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Increase in trade and other debtors | ( |
) | ( |
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Increase in trade and other creditors |
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Cash generated from operations |
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2. | CASH AND CASH EQUIVALENTS |
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The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in |
respect of these Balance Sheet amounts: |
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Year ended 31st March 2019 |
31/3/19 | 1/4/18 |
£ | £ |
Cash and cash equivalents | 670,264 | 418,031 |
Bank overdrafts | ( |
) | ( |
) |
(459,401 | ) | (709,441 | ) |
Year ended 31st March 2018 |
31/3/18 | 1/4/17 |
£ | £ |
Cash and cash equivalents | 418,031 | 127,692 |
Bank overdrafts | ( |
) | ( |
) |
(709,441 | ) | (1,007,973 | ) |
MARK'S ELECTRICAL LIMITED (REGISTERED NUMBER: 04463433) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST MARCH 2019 |
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1. | STATUTORY INFORMATION |
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Mark's Electrical Limited is a
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company's registered number and registered office address can be found on the Company Information |
page. |
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The presentation currency of the financial statements is the Pound Sterling (£). |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Significant judgements and estimates |
In the process of applying the company's accounting policies, management has made no significant |
judgements which have a significant effect on the amounts recognised in the financial statements or made |
any significant estimates that have a significant risk of causing a material adjustment to the carrying |
amounts of assets and liabilities within the next reporting period. |
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Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, |
rebates, value added tax and other sales taxes. |
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Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the |
goods have transferred to the buyer which in practice is the delivery of the goods to the buyer. |
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Tangible fixed assets |
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Short leasehold | - |
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Plant and machinery | - |
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No depreciation is provided on freehold property. The directors consider that the residual values of these |
assets exceeds their carrying value. |
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Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete |
and slow moving items. |
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Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as |
an expense in the period in which the related revenue is recognised. |
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MARK'S ELECTRICAL LIMITED (REGISTERED NUMBER: 04463433) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2019 |
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2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, |
except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been |
enacted or substantively enacted by the balance sheet date. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the |
balance sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods |
different from those in which they are recognised in financial statements. Deferred tax is measured using |
tax rates and laws that have been enacted or substantively enacted by the year end and that are expected |
to apply to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable |
that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of |
the lease. |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's |
pension scheme are charged to profit or loss in the period to which they relate. |
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Financial instruments |
Basic financial instruments such as cash, amounts receivable and amounts payable, are initially measured |
at their transaction price then adjusted for any impairment. If in essence a financial instrument constitutes |
a financing arrangement it will be measured at amortised cost using the effective interest method. Any |
losses arising from impairment are recognised in the profit and loss account. |
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Investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially |
measured at fair value which is normally the transaction price excluding transaction costs. Such assets |
are subsequently measured at fair value and the changes in fair value are recognised in the 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. |
MARK'S ELECTRICAL LIMITED (REGISTERED NUMBER: 04463433) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2019 |
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3. | TURNOVER |
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The turnover and profit before taxation are attributable to the one principal activity of the company. |
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An analysis of turnover by geographical market is given below: |
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2019 | 2018 |
£ | £ |
United Kingdom |
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4. | EMPLOYEES AND DIRECTORS |
2019 | 2018 |
£ | £ |
Wages and salaries |
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Social security costs |
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Other pension costs |
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The average number of employees during the year was as follows: |
2019 | 2018 |
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Administration | 16 | 13 |
Distribution | 49 | 56 |
Marketing | 5 | 9 |
Sales | 15 | 15 |
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2019 | 2018 |
£ | £ |
Director's remuneration |
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The number of directors to whom retirement benefits were accruing was as follows: |
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Money purchase schemes |
|
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MARK'S ELECTRICAL LIMITED (REGISTERED NUMBER: 04463433) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2019 |
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5. | OPERATING PROFIT |
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The operating profit is stated after charging: |
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2019 | 2018 |
£ | £ |
Hire of plant and machinery |
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Other operating leases |
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Depreciation - owned assets |
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Loss on disposal of fixed assets |
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Auditors' remuneration |
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6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2019 | 2018 |
£ | £ |
Bank interest |
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Bank loan interest |
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Other loan interest |
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Hire purchase |
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7. | TAXATION |
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Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2019 | 2018 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
|
Deferred tax | ( |
) |
|
Tax on profit |
|
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MARK'S ELECTRICAL LIMITED (REGISTERED NUMBER: 04463433) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2019 |
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7. | TAXATION - continued |
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Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference |
is explained below: |
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2019 | 2018 |
£ | £ |
Profit before tax |
|
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Profit multiplied by the standard rate of corporation tax in the UK of
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Effects of: |
Expenses not deductible for tax purposes |
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Research & Development enhanced deduction | ( |
) |
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Change in tax rates |
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( |
) |
Total tax charge | 261,633 | 86,500 |
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Tax effects relating to effects of other comprehensive income |
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2019 |
Gross | Tax | Net |
£ | £ | £ |
Fair value of freehold property |
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(113,287 | ) | 572,389 |
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8. | DIVIDENDS |
2019 | 2018 |
£ | £ |
Ordinary shares of £1 each |
Interim |
|
|
MARK'S ELECTRICAL LIMITED (REGISTERED NUMBER: 04463433) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2019 |
|
|
9. | TANGIBLE FIXED ASSETS |
Freehold | Short | Plant and |
property | leasehold | machinery | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1st April 2018 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
|
|
( |
) | ( |
) |
Revaluations |
|
|
|
|
At 31st March 2019 |
|
|
|
|
DEPRECIATION |
At 1st April 2018 |
|
|
|
|
Charge for year |
|
|
|
|
Eliminated on disposal |
|
|
( |
) | ( |
) |
Revaluation adjustments | ( |
) |
|
|
( |
) |
At 31st March 2019 |
|
|
|
|
NET BOOK VALUE |
At 31st March 2019 |
|
|
|
|
At 31st March 2018 |
|
|
|
|
|
There is a 1st legal charge over the freehold property in favour of Lloyds Bank. The property is jointly |
owned by Mark's Electrical Ltd and the Trustees of The Smithson Pension Fund. The proportion owned by |
Mark's Electrical Ltd is recognised in these financial statements. |
|
The carrying value of plant and machinery included in the above which is held under hire purchase |
agreements is £204,845 (2018 £355,867). |
|
Cost or valuation at 31st March 2019 is represented by: |
|
Freehold | Short | Plant and |
property | leasehold | machinery | Totals |
£ | £ | £ | £ |
Valuation in 2019 | 666,917 | - | - | 666,917 |
Cost | 3,983,083 | 97,215 | 1,669,806 | 5,750,104 |
4,650,000 | 97,215 | 1,669,806 | 6,417,021 |
|
The freehold property is recognised at its estimated fair value at 31st March 2019. A valuation of the |
property was carried out by an independent valuer in December 2019. The director considers that the |
valuation at 31st March 2019 is not materially different to that in December 2019. The carrying amount of |
the freehold property under the cost model at 31st March 2019 would have been £3,964,325 |
MARK'S ELECTRICAL LIMITED (REGISTERED NUMBER: 04463433) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2019 |
|
|
10. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
£ |
COST OR VALUATION |
At 1st April 2018 |
|
Revaluations |
|
At 31st March 2019 |
|
NET BOOK VALUE |
At 31st March 2019 |
|
At 31st March 2018 |
|
|
The investment's fair value is determined by Combined Independents (Holdings) Limited in accordance |
with the membership agreement to which Mark's Electrical Ltd is a party. |
|
11. | STOCKS |
2019 | 2018 |
£ | £ |
Stocks |
|
|
|
Stock recognised as an expense in cost-of-sales was £23,723,049 (2018 £23,960,867) |
|
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Trade debtors |
|
|
Other debtors |
|
|
VAT |
|
|
Prepayments and accrued income |
|
|
|
|
MARK'S ELECTRICAL LIMITED (REGISTERED NUMBER: 04463433) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2019 |
|
|
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Bank loans and overdrafts (see note 15) |
|
|
Other loans (see note 15) |
|
|
Hire purchase contracts (see note 16) |
|
|
Trade creditors |
|
|
Corporation tax |
|
|
PAYE and NIC |
|
|
VAT | - | 25,664 |
Other creditors |
|
|
Wages creditor | 119,522 | 154,868 |
Pension creditor | 9,978 | 2,700 |
Directors' loan accounts | 761 | 569 |
Accruals and deferred income |
|
|
|
|
|
14. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
2019 | 2018 |
£ | £ |
Bank loans (see note 15) |
|
|
Other loans (see note 15) |
|
|
Hire purchase contracts (see note 16) |
|
|
|
|
|
15. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
2019 | 2018 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
|
|
Bank loans |
|
|
Other loans |
|
|
|
|
|
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
|
|
Other loans - 1-2 years | - |
|
|
|
MARK'S ELECTRICAL LIMITED (REGISTERED NUMBER: 04463433) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2019 |
|
|
15. | LOANS - continued |
2019 | 2018 |
£ | £ |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
|
|
Other loans - 2-5 years |
|
|
|
|
|
Amounts falling due in more than five years: |
|
Repayable by instalments |
Bank loans more than 5 years |
by instalment | 792,989 | 1,009,439 |
792,989 | 1,009,439 |
|
The bank loan is repayable in monthly installments over 10 years and bears interest at 2.05% above the |
bank base rate. |
|
16. | LEASING AGREEMENTS |
|
Minimum lease payments fall due as follows: |
|
Hire purchase |
contracts |
2019 | 2018 |
£ | £ |
Net obligations repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
Non-cancellable |
operating leases |
2019 | 2018 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
|
|
MARK'S ELECTRICAL LIMITED (REGISTERED NUMBER: 04463433) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2019 |
|
|
17. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
2019 | 2018 |
£ | £ |
Bank overdrafts |
|
|
Bank loans |
|
|
|
|
|
Borrowings are secured by an unlimited debenture incorporating a fixed and floating charge dated 7th May |
2013 and a first legal charge over the freehold property of the company dated 6th June 2017 in favour of |
Lloyds Bank. |
|
18. | FINANCIAL INSTRUMENTS |
|
Carrying amount of financial assets | 2019 | 2018 |
£ | £ |
Receivables measured at undiscounted amounts | 2,480,321 | 2,595,196 |
Unlisted investments at fair value through profit and loss | 665,067 | 558,162 |
3,145,388 | 3,153,358 |
Fair value gains |
£ | £ |
On financial assets measured at fair value through profit and loss | 106,905 | 60,895 |
|
|
Carrying amount of financial liabilities | 2019 | 2018 |
£ | £ |
Payables measured at undiscounted amounts | 4,098,582 | 3,638,864 |
Loans at amortised cost | 2,205,190 | 2,547,015 |
Hire purchase at amortised cost | 137,738 | 286,460 |
6,441,510 | 6,472,339 |
Interest expense |
£ | £ |
Total interest expense of financial liabilities at amortised cost | 81,872 | 89,167 |
MARK'S ELECTRICAL LIMITED (REGISTERED NUMBER: 04463433) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2019 |
|
|
19. | PROVISIONS FOR LIABILITIES |
2019 | 2018 |
£ | £ |
Deferred tax |
Revaluation of investments | 123,974 | 112,950 |
Capital gains rollover | 23,800 | 23,800 |
Revaluation of property | 113,287 | - |
Accelerated capital allowances | 106,682 | 121,750 |
367,743 | 258,500 |
|
Deferred |
tax |
£ |
Balance at 1st April 2018 |
|
Revaluation of investments | 11,024 |
Accelerated capital allowances | (15,068 | ) |
Revaluation of property | 113,287 |
Balance at 31st March 2019 |
|
|
20. | CALLED UP SHARE CAPITAL |
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2019 | 2018 |
value: | £ | £ |
|
Ordinary | £1 | 100 | 100 |
|
Allotted and issued: |
Number: | Class: | Nominal | 2019 | 2018 |
value: | £ | £ |
|
Class E shares 1p paid | £1 | 6,000 | 6,000 |
MARK'S ELECTRICAL LIMITED (REGISTERED NUMBER: 04463433) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2019 |
|
|
21. | RESERVES |
Fair |
Retained | value |
earnings | reserve | Totals |
£ | £ | £ |
|
At 1st April 2018 |
|
|
3,620,663 |
Profit for the year |
|
|
Dividends | ( |
) | ( |
) |
Revaluation | 572,389 | - | 572,389 |
Reserve transfer | (668,270 | ) | 668,270 | - |
At 31st March 2019 |
|
|
5,024,772 |
|
Retained earnings |
Retained earnings represents realised cumulative profits net of dividends paid. |
|
Fair value reserve |
The fair value reserve represents all unrealised gains and losses net of deferred tax. |
|
22. | PENSION COMMITMENTS |
|
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. The |
charge to the profit and loss in respect of defined contribution schemes was £ |
26,388 (2018 £13,588) |
|
23. | CONTINGENT LIABILITIES |
|
The company has entered into tax efficient schemes which are now being contested by HMRC. |
|
The company has been advised that it is possible, but not probable, that there will be additional liabilities |
resulting from this. Accordingly, no provision for any liability has been made in these financial statements. |
|
It has been estimated that should HMRC successfully challenge the schemes, the liability would be in the |
region of £1.5m excluding interest and penalties. |
|
The company has made payments totalling £743k relating to these schemes under accelerated payment |
notices issued by HMRC, which are included in other debtors. |
|
24. | RELATED PARTY DISCLOSURES |
|
The company operates from leased premises owned by the director and his pension scheme. The rent |
paid to the director amounted to £59,800 (2018 £59,800) and to his pension scheme £218,287 (2018 |
£197,239). |
|
At the year end £682,934 (2018 £889,959) was outstanding from entities controlled by persons with control |
and £224,625 (2018 £441,055) was due to such entities. |
MARK'S ELECTRICAL LIMITED (REGISTERED NUMBER: 04463433) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2019 |
|
|
25. | EVENTS SINCE THE YEAR END |
|
Since the year end date a property that the director owned personally, which has previously been used by |
the company as a showroom was sold. This property was used as security for a loan from the directors |
pension fund to the company. On completion of the sale, the company will be required to repay the loan in |
full. The outstanding balance at the year end date was £224,625. |
|
26. | ULTIMATE CONTROLLING PARTY |
|
The controlling party is M A Smithson. |