|
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 accounts section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
|
Conclusions relating to going concern |
In auditing the accounts, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the accounts is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the accounts are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
|
Other information |
The other information comprises the information included in the annual report other than the accounts and our auditors' report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the accounts 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the course of 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 this gives rise to a material misstatement in the accounts themselves. 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. |
|
Opinion on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
● |
the information given in the strategic report and the directors' report for the financial year for which the accounts are prepared is consistent with the accounts; and |
● |
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements. |
|
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: |
|
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
● |
ensuring that the people involved in the audit had appropriate experience and skill to identify non-compliance with laws and regulations; |
● |
identifying laws and regulations applicable to the company through discussion with the directors; |
● |
focussing on laws and regulations which may have a direct effect on the company's financial statements; and |
● |
assessing compliance with the laws and regulations identified, through discussion with the directors. |
|
We assessed the susceptibility of the company's accounts to material misstatement, including obtaining an understanding of how fraud might occur, by enquiring of management about their knowledge of actual, suspected or alleged fraud, and considering controls in place. To address the risk of fraud through management bias and override of controls we carried out analytical procedures, tested journal entries, assessed estimates for potential bias and investigated significant transactions. In response to the risk of irregularities and non-compliance with laws and regulations we designed procedures which included but were not limited to agreeing disclosures to supporting documentation, reading minutes of board meetings, enquiring of the directors as to any claims against the company and of any correspondence with regulatory authorities. There are inherent limitations in our audit procedures described above: the more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of any non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
|
A further description of our responsibilities for the audit of the accounts is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' report.
|
|
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 an auditors' 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. |
|
Bellamy House |
Winton Road |
J R Stimpson
|
Petersfield |
(Senior Statutory Auditor) |
Hants |
for and on behalf of |
GU32 3HA |
Howard Smith & Co Limited
|
Chartered Accountants and Statutory Auditors |
20 July 2022
|
|
Mabway Limited |
Statement of Cash Flows |
for the year ended 30 September 2021 |
|
|
|
|
2021 |
|
2020 |
£ |
£ |
Operating activities |
Profit for the financial year |
3,127,405 |
|
1,520,516 |
|
Adjustments for: |
Interest receivable |
(151) |
|
(4,641) |
Interest payable |
6,766 |
|
13,677 |
Tax on profit on ordinary activities |
793,267 |
|
416,535 |
Depreciation |
358,465 |
|
367,767 |
Increase in debtors |
(1,213,918) |
|
(1,097,510) |
Decrease in creditors |
(480,685) |
|
(168,612) |
|
|
|
2,591,149 |
|
1,047,732 |
|
Interest received |
151 |
|
4,641 |
Interest paid |
|
|
(4,180) |
|
(11,197) |
Interest element of finance lease payments |
(2,586) |
|
(2,498) |
Corporation tax paid |
(540,384) |
|
(250,960) |
|
Cash generated by operating activities |
2,044,150 |
|
787,718 |
|
|
|
|
|
|
Investing activities |
Payments to acquire tangible fixed assets |
(114,445) |
|
(85,703) |
Proceeds from sale of tangible fixed assets |
20,800 |
|
540 |
|
Cash used in investing activities |
(93,645) |
|
(85,163) |
|
|
|
|
|
|
Financing activities |
Equity dividends paid |
(1,062,673) |
|
(901,945) |
Proceeds from the issue of shares |
4,000 |
|
1 |
Capital element of finance lease payments |
(30,861) |
|
(30,402) |
|
Cash used in financing activities |
(1,089,534) |
|
(932,346) |
|
|
|
|
|
|
Net cash generated/(used) |
Cash generated by operating activities |
2,044,150 |
|
787,718 |
Cash used in investing activities |
(93,645) |
|
(85,163) |
Cash used in financing activities |
(1,089,534) |
|
(932,346) |
|
Net cash generated/(used) |
860,971 |
|
(229,791) |
|
Cash and cash equivalents at 1 October |
2,931,053 |
|
2,910,769 |
Cash and cash equivalents at 30 September |
3,792,024 |
|
2,680,978 |
|
|
|
|
|
|
Cash and cash equivalents comprise: |
Cash at bank and in hand |
3,792,024 |
|
2,680,978 |
|
|
|
|
|
|
|
Mabway Limited
|
Notes to the Accounts |
for the year ended 30 September 2021
|
|
|
1 |
Accounting policies |
|
|
The principal accounting policies adopted in the preparation of the accounts are set out below; they have remained unchanged from the previous period and have been consistently applied: |
|
|
Basis of preparation |
|
The accounts have been prepared under the historical cost convention and in accordance with FRS 102, the financial reporting standard applicable in the UK and Republic of Ireland. There have been no material departures from that standard.
|
|
|
Fundamental accounting concept |
|
The financial statements have been prepared under the going concern concept. In common with many businesses the company has been affected by COVID-19, which has had an impact on its operations, customers and suppliers. The directors are taking all possible steps to protect the future of the business, including the following: |
|
- employees have been furloughed where appropriate and corresponding claims made under the Coronavirus Job Retention Scheme |
|
- one quarter's VAT payment was deferred in accordance with the Coronavirus VAT Deferral Scheme |
|
|
Although the total impact of COVID-19 on the business is still uncertain, the directors feel that the going concern basis is appropriate. |
|
|
Turnover |
|
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and VAT. Turnover includes revenue earned from the rendering of services. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
|
|
|
Government grants |
|
Government grants are recognised on the respective dates that the company becomes entitled to them. |
|
|
Tangible fixed assets |
|
Tangible fixed assets are measured at cost less accumulated depreciation and impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
|
|
|
Leasehold buildings (with formal lease) |
over the lease term |
|
Leasehold buildings (without formal lease) |
20% straight line |
|
Plant and machinery |
20-33% straight line |
|
Motor vehicles
|
25% straight line |
|
|
Debtors |
|
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
|
|
|
Creditors |
|
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
|
|
|
Taxation |
|
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
|
|
|
Leased assets |
|
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
|
|
|
Pensions |
|
Contributions to defined contribution plans are expensed in the period to which they relate.
|
|
|
2 |
Government grants |
|
|
During the year Government grants were received, relating to its response to the COVID-19 pandemic, in the sum of £2,134 (2020 £487,128). |
|
|
3 |
Operating profit |
2021 |
|
2020 |
£ |
£ |
|
This is stated after charging: |
|
|
Depreciation of owned fixed assets |
322,801 |
|
332,103 |
|
Depreciation of assets held under finance leases and hire purchase contracts |
|
35,664 |
|
35,664 |
|
Operating lease rentals - land buildings |
44,171 |
|
37,153 |
|
Auditors' remuneration for audit services |
5,000 |
|
- |
|
Key management personnel compensation (including directors' emoluments) |
|
74,441 |
|
54,436 |
|
|
|
|
|
|
|
|
|
|
4 |
Directors' emoluments |
2021 |
|
2020 |
£ |
£ |
|
|
Emoluments |
26,406 |
|
39,998 |
|
Company contributions to money purchase pension schemes |
48,035 |
|
14,438 |
|
|
|
|
|
|
74,441 |
|
54,436 |
|
|
|
|
|
|
|
|
|
|
|
Number of directors in company pension schemes: |
2021 |
|
2020 |
Number |
Number |
|
|
Money purchase schemes |
4 |
|
4 |
|
|
|
|
|
|
|
|
|
|
5 |
Staff costs |
2021 |
|
2020 |
£ |
£ |
|
|
Wages and salaries |
6,895,488 |
|
5,079,466 |
|
Social security costs |
545,771 |
|
352,186 |
|
Other pension costs |
165,731 |
|
86,995 |
|
|
|
|
|
|
7,606,990 |
|
5,518,647 |
|
|
|
|
|
|
|
|
|
|
Average number of persons employed by the company |
2021 |
|
2020 |
Number |
Number |
|
|
Fulfilment |
1,274 |
|
1,302 |
|
|
|
|
|
|
|
|
|
|
6 |
Interest payable |
2021 |
|
2020 |
£ |
£ |
|
|
Other loans |
4,180 |
|
11,179 |
|
Finance charges payable under finance leases and hire purchase contracts |
|
2,586 |
|
2,498 |
|
|
|
|
|
|
6,766 |
|
13,677 |
|
|
|
|
|
|
|
|
|
|
7 |
Taxation |
2021 |
|
2020 |
£ |
£ |
|
Analysis of charge in period |
|
Current tax: |
|
UK Corporation Tax on profits of the period |
785,904 |
|
427,429 |
|
|
|
|
|
|
|
|
|
|
Deferred tax: |
|
Origination and reversal of timing differences |
8,594 |
|
(10,894) |
|
Effect of increased tax rate on opening liability |
(1,231) |
|
- |
|
|
|
|
|
|
7,363 |
|
(10,894) |
|
|
|
|
|
|
|
|
|
|
|
Tax on profit on ordinary activities |
793,267 |
|
416,535 |
|
|
|
|
|
|
|
|
|
|
|
Factors affecting tax charge for period |
|
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
|
|
|
|
|
|
|
2021 |
|
2020 |
£ |
£ |
|
Profit on ordinary activities before tax |
3,920,672 |
|
1,937,051 |
|
|
|
|
|
|
|
|
|
|
Standard rate of Corporation Tax in the UK |
19.00% |
|
19.00% |
|
£ |
£ |
|
Profit on ordinary activities multiplied by the standard rate of Corporation Tax |
|
744,928 |
|
368,040 |
|
|
Effects of: |
|
Expenses not deductible for tax purposes |
516 |
|
1,504 |
|
Capital allowances for period in excess of depreciation |
40,460 |
|
57,885 |
|
Current tax charge for period |
785,904 |
|
427,429 |
|
|
|
|
|
|
|
|
|
|
8 |
Tangible fixed assets |
|
|
Land and buildings |
|
Plant and machinery |
|
Motor vehicles |
|
Total |
£ |
£ |
£ |
£ |
|
Cost |
|
At 1 October 2020 |
876,537 |
|
285,005 |
|
443,710 |
|
1,605,252 |
|
Additions |
- |
|
12,595 |
|
101,850 |
|
114,445 |
|
Disposals |
- |
|
- |
|
(46,900) |
|
(46,900) |
|
At 30 September 2021 |
876,537 |
|
297,600 |
|
498,660 |
|
1,672,797 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 October 2020 |
628,051 |
|
233,420 |
|
326,702 |
|
1,188,173 |
|
Charge for the year |
247,320 |
|
31,316 |
|
79,829 |
|
358,465 |
|
On disposals |
- |
|
- |
|
(46,900) |
|
(46,900) |
|
At 30 September 2021 |
875,371 |
|
264,736 |
|
359,631 |
|
1,499,738 |
|
|
|
|
|
|
|
|
|
|
Net book value |
|
At 30 September 2021 |
1,166 |
|
32,864 |
|
139,029 |
|
173,059 |
|
At 30 September 2020 |
248,486 |
|
51,585 |
|
117,008 |
|
417,079 |
|
|
|
|
|
|
|
|
|
|
9 |
Debtors |
2021 |
|
2020 |
£ |
£ |
|
|
Trade debtors |
2,646,970 |
|
871,522 |
|
Deferred tax asset |
|
|
|
|
- |
|
3,898 |
|
Other debtors |
60,166 |
|
151,922 |
|
Prepayments and accrued income |
1,212,331 |
|
1,682,105 |
|
|
|
|
|
|
3,919,467 |
|
2,709,447 |
|
|
|
|
|
|
|
|
|
|
10 |
Creditors: amounts falling due within one year |
2021 |
|
2020 |
£ |
£ |
|
|
Obligations under finance lease and hire purchase contracts |
24,311 |
|
30,864 |
|
Trade creditors |
23,896 |
|
118,530 |
|
Corporation Tax |
|
|
|
|
555,904 |
|
310,384 |
|
Other taxation and social security costs |
1,183,455 |
|
868,758 |
|
Other creditors |
29,798 |
|
27,288 |
|
Accruals and deferred income |
78,753 |
|
511,136 |
|
|
|
|
|
|
1,896,117 |
|
1,866,960 |
|
|
|
|
|
|
|
|
|
|
11 |
Creditors: amounts falling due after more than one year |
2021 |
|
2020 |
£ |
£ |
|
|
Obligations under finance lease and hire purchase contracts |
11,786 |
|
36,094 |
|
|
|
|
|
|
|
|
|
|
12 |
Obligations under finance leases and hire purchase contracts |
2021 |
|
2020 |
£ |
£ |
|
Amounts payable: |
|
Within one year |
24,311 |
|
30,864 |
|
Within two to five years |
11,786 |
|
36,094 |
|
|
|
|
|
|
36,097 |
|
66,958 |
|
|
|
|
|
|
|
|
|
|
Obligations under finance leases and hire purchase agreements are secured on the assets to which they relate. |
|
|
13 |
Deferred taxation |
2021 |
|
2020 |
£ |
£ |
|
|
Accelerated capital allowances |
3,465 |
|
(3,898) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
2020 |
£ |
£ |
|
|
At 1 October |
(3,898) |
|
6,996 |
|
Deferred tax charge in profit and loss account |
7,363 |
|
(10,894) |
|
At 30 September |
3,465 |
|
(3,898) |
|
|
|
|
|
|
|
|
|
|
Deferred tax of £19,908 is expected to reverse in the next year as accelerated capital allowances reduce. |
|
|
14 |
Share capital |
Nominal |
|
2021 |
|
2021 |
|
2020 |
value |
Number |
£ |
£ |
|
Allotted, called up and fully paid: |
|
Ordinary shares |
£1 each |
|
849 |
|
849 |
|
849 |
|
'A' ordinary shares |
£1 each |
|
65 |
|
65 |
|
65 |
|
'B' ordinary shares |
£1 each |
|
65 |
|
65 |
|
65 |
|
'C' ordinary shares |
£1 each |
|
15 |
|
15 |
|
15 |
|
'E' ordinary shares |
£1 each |
|
1 |
|
1 |
|
1 |
|
'F' ordinary shares |
£1 each |
|
1 |
|
1 |
|
1 |
|
'G' ordinary shares |
£1 each |
|
1 |
|
1 |
|
1 |
|
'H' ordinary shares |
£1 each |
|
1 |
|
1 |
|
1 |
|
'I' ordinary shares |
£1 each |
|
1 |
|
1 |
|
1 |
|
'J' ordinary shares |
£1 each |
|
1 |
|
1 |
|
1 |
|
'K' ordinary shares |
£1 each |
|
1 |
|
1 |
|
1 |
|
'L' ordinary shares |
£1 each |
|
1 |
|
1 |
|
- |
|
|
|
|
|
|
1,002 |
|
1,001 |
|
|
|
|
|
|
|
|
|
|
All shares carry full voting rights (one vote per share), full rights to participate in any capital distribution on winding up and full rights to participate regarding dividends in respect of the class of share. |
|
Nominal |
Number |
Amount |
value |
£ |
|
Shares issued during the period: |
|
'L' ordinary shares |
£1 each |
|
1 |
|
1 |
|
|
|
|
|
|
|
|
Consideration of £4,000 was paid for the 'L' ordinary share allotted during the year. |
|
|
15 |
Other financial commitments |
|
|
Total future minimum lease payments under non-cancellable operating leases: |
|
|
|
Land and buildings |
|
Land and buildings |
Other |
Other |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
£ |
£ |
£ |
£ |
|
Falling due: |
|
within one year |
10,736 |
|
10,742 |
|
- |
|
- |
|
within two to five years |
39,768 |
|
63,000 |
|
- |
|
- |
|
|
50,504 |
|
73,742 |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
16 |
Controlling parties |
|
|
The ultimate controlling parties throughout the year were Mrs A T O'Reilly and Mr M S M O'Reilly.
|
|
|
17 |
Other information |
|
|
Mabway Limited is a private company limited by shares and incorporated in England and Wales. Its registered office is Ralls House, Parklands Business Park, Forest Road, Denmead, Waterlooville, Hants, PO7 6XP. |