Company Registration No. 05539272 (England and Wales)
MSS FACILITIES SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
MSS FACILITIES SERVICES LIMITED
COMPANY INFORMATION
Directors
Mr W D Mayne
Mr R Little
Secretary
Mr J Jones
Company number
05539272
Registered office
Galdames Place
Ocean Park
CARDIFF
South Glamorgan
UK
CF24 5RE
Auditor
Baldwins Audit Services
Ty Derw
Lime Tree Court
Cardiff Gate Business Park
CARDIFF
UK
CF23 8AB
MSS FACILITIES SERVICES LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 24
MSS FACILITIES SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2020
- 1 -
The directors present the strategic report for the year ended 31 March 2020.
“We create and maintain clean, safe and secure environments”
In the Financial Year ended 31 March 2020 we succeeded in meeting and exceeding all the objectives set out in last year’s Strategic Review. It is very satisfying to report record growth across the board including sales revenue, gross profit, and profit before tax. This was the outcome of considerable investment in key areas of the business and in developing and strengthening the senior management team. It also validated our view that the strategic direction of the business we had chosen enabled us to grow in a robust and scalable manner.
We remain an Organisation committed to the safety, personal development, and well-being of our staff. We operate across a diverse range of difficult and hazardous environments which means Health & Safety comes before any other business objective. It is a source of great pride that we have not had a RIDDOR reportable incident since 2018 and only 4 lost days to accidents during this 2019/20 period. We are committed to looking after our employees and currently hold the Investors in People Silver Award, which puts us into the top 5% of accredited companies.
Our staff are rewarded through an excellent benefit package with enhanced family friendly policies, death in service benefit, Employee Discount Scheme, Counselling Service, Cycle to Work, You’re a Star programmes celebrating individual and team success, increased holiday entitlement for service anniversary’s along with badges for recognition. Our employees make our business the success it is, so it is important they get the appropriate praise and benefits. Our leadership team continues to grow from strength to strength, giving employees the opportunity to flourish in our growing environment. We aim to promote within, retaining knowledge and expertise of our contracts and clients and developing the core skills to allow them to be excellent Team Leaders, Supervisors and Managers.
Our Majority of our clients consist of large multi-national businesses, major construction companies and public sector bodies. They choose us to carry out critical work that they do not have the skills to do themselves or that they do not develop because they are not core to their business.
The fact that around 95% of our workforce were defined as “key workers” at the beginning of the Covid-19 lockdown illustrates the key role we carry out for other businesses. We have responded well to the challenges of operating in the changing circumstances of Coronavirus and have performed at virtually full capacity throughout the lockdown period. We have implemented safe working procedures for all the activities we carry out and put numerous measures in place to support our staff during this period.
Consistent and reliable delivery of products and services is at the heart of everything we do. Our ability to do this has led to enduring relationships with companies that share our commitment to health & safety, quality, and working in partnership to deliver exceptional results. Historically we have a very low turnover of clients and we are pleased to report no losses of any note in the financial year. We are also delighted to have won several significant new clients which has opened up opportunities for the business both geographically and in terms of products and services.
Approximately 35% of our business by turnover is now conducted outside Wales and that share is growing. In the first Quarter of 2020 we opened an office in Wellington to further expand our market share in the South West of England. We will continue to look for further opportunities to expand in the financial year 20/21.
All parts of our business performed above expectation in the financial year.
The robust nature of the systems and processes within our integrated management system has enabled us to increase our turnover without putting undue strain on the organisation.
As well as incorporating ISO 9001, ISO 14001 and ISO 45001 we are accredited by numerous professional bodies for the work we do. These include ARCA, LCA, Constructionline, SIA, Safecontractor, UKATA, and CHAS. Adherence to these controls and regulations is fully embedded in the way we work every day.
MSS FACILITIES SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 2 -
We are very conscious of our responsibilities to the communities in which we operate and to the wider environment. We support a number of local charities and other organisations. We are members of Business in the Community, and a senior board member is Chair of the Chartered Institute of Waste Management in Wales and the Chairman of WAMITAB.
Key Performance Indicators
The performance of all areas of
t
he
company
is tracked on a daily, weekly, and monthly basis using our management information systems.
We use these KPIs to track performance against budget on our fixed contracts and projects. The KPI data is analysed in detail to ensure
the company
is meeting all the objectives set out in the strategic review and the separate business plans for each business. This information is then passed to the board for regular reviews.
Principal risks and uncertainties
Whilst it is not possible to eliminate all risks and uncertainties, the group has an established risk management and internal control system in place to manage them.
The following sets out the principal risks faced by the group and how they are mitigated:
Contract delivery
-
The group has a number of contracts in progress at any point in time. Dependent on the nature, location and duration of the work and the legal framework of the contract, there is a risk that ineffective contract management could result in reputational damage, financial impact or failure to deliver on contracts.
People
-
The group depends on a flexible, diverse, and well-motivated workforce. If the group fails in attracting, developing, and retaining skilled people, as well as understanding and embracing the diversity of those people, it will not be able to grow the business as anticipated.
-
The group monitors staff turnover closely. Pay and conditions are reviewed regularly against the prevailing market to ensure that we remain competitive. Succession planning and staff development are managed at all levels in the group. The group has a performance review process which is designed to assist in the career development of its staff and to identify potential successors to roles within the group, including at board level.
Contract pricing
-
The work for which the group tenders can often be complex with significant associated risks. Tender assumptions may be inaccurate, or the risks associated with the tender may not be fully understood. If tenders are under-priced, contract losses and potential reputational damage will result. If tenders are over-priced, order books may suffer.
MSS FACILITIES SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 3 -
Safety
-
The group's activities are often complex and require the continuous monitoring and management of health, safety and environmental risks. Failure to manage these risks could result in injury to employees, sub-contractors or members of the public or damage to the environment. This could also expose the group to a significant potential liability and to reputational damage.
Reputation
-
The group's ability to tender and win new business and its relationship with customers, supply chain partners, employees and other stakeholders depends in large part on the good reputation that it has established and how it is perceived by others. The group's growth targets may not be achieved if its reputation is adversely affected.
Other information and explanations
At the date of signing the strategic report there is economic disruption as political administrations worldwide respond to the pandemic of the virus Covid-19. Our assessment is there will be a period of adjustment whilst society and business determine new strategies to live and work in a changed set of circumstances.
Consequently, there is an extraordinary level of uncertainty in all businesses at the moment which is having a wide-reaching economic impact.
However, during this period, the company has continued to trade at pre-Coronavirus levels and meet its budget expectations to date. We can currently see no reason why this should change in the foreseeable future. We continue to have regular, planned dialog with our customers and have met the increases in demand for our services at this time. The management team will continue endeavouring to anticipate the changes that may occur to ensure that the company is well placed to meet ongoing customer needs.
Mr W D Mayne
Director
18 June 2020
MSS FACILITIES SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2020
- 4 -
The directors present their annual report and financial statements for the year ended 31 March 2020.
Principal activities
The principal activity of the company continued to be that of general industrial services including cleaning and maintenance.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr W D Mayne
Mr R Little
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £362,500. The directors do not recommend payment of a final dividend.
Auditor
In accordance with the company's articles, a resolution proposing that Baldwins Audit Services be reappointed as auditor of the company will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr W D Mayne
Director
18 June 2020
MSS FACILITIES SERVICES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2020
- 5 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 directors must not approve the financial statements unless they are 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 directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are 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 them to ensure that the financial statements comply with the Companies Act 2006. They are 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.
MSS FACILITIES SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MSS FACILITIES SERVICES LIMITED
- 6 -
Opinion
We have audited the financial statements of MSS Facilities Services Limited (the 'company') for the year ended 31 March 2020 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and 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 FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 March 2020 and of its profit for the year then ended;
-
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.
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
Auditor's
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.
We draw attention to note 1.2 in the financial statements which indicates that the company as a consequence of the emergence of the Covid-19 virus post year end has encountered some disruption within the sector it operates. Our audit report is not modified in respect of this matter.
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:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have 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
.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
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.
MSS FACILITIES SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MSS FACILITIES SERVICES LIMITED
- 7 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors' r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; 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 identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
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 directors' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are 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 directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's 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 an auditor’s report 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.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
MSS FACILITIES SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MSS FACILITIES SERVICES LIMITED
- 8 -
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.
Ian Thomas BSc FCA DChA (Senior Statutory Auditor)
for and on behalf of Baldwins Audit Services
18 June 2020
Statutory Auditor
Ty Derw
Lime Tree Court
Cardiff Gate Business Park
CARDIFF
UK
CF23 8AB
MSS FACILITIES SERVICES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2020
- 9 -
2020
2019
Notes
£
£
Turnover
3
12,191,196
10,848,057
Cost of sales
(9,446,895)
(8,481,602)
Gross profit
2,744,301
2,366,455
Administrative expenses
(2,586,576)
(2,572,741)
Other operating income
-
250,000
Operating profit
4
157,725
43,714
Interest payable and similar expenses
7
(25,020)
(19,509)
Profit before taxation
132,705
24,205
Tax on profit
8
(8,831)
(24,860)
Profit/(loss) for the financial year
123,874
(655)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
MSS FACILITIES SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2020
- 10 -
2020
2019
£
£
Profit/(loss) for the year
123,874
(655)
Other comprehensive income
-
-
Total comprehensive income for the year
123,874
(655)
MSS FACILITIES SERVICES LIMITED
BALANCE SHEET
AS AT
31 MARCH 2020
31 March 2020
- 11 -
2020
2019
Notes
£
£
£
£
Fixed assets
Goodwill
10
30,036
36,078
Tangible assets
11
407,049
500,199
437,085
536,277
Current assets
Debtors
12
5,152,508
5,466,095
Cash at bank and in hand
456,676
52,028
5,609,184
5,518,123
Creditors: amounts falling due within one year
13
(5,560,724)
(5,225,268)
Net current assets
48,460
292,855
Total assets less current liabilities
485,545
829,132
Creditors: amounts falling due after more than one year
14
(55,773)
(153,420)
Provisions for liabilities
16
(61,509)
(68,823)
Net assets
368,263
606,889
Capital and reserves
Called up share capital
19
12,500
12,500
Profit and loss reserves
355,763
594,389
Total equity
368,263
606,889
The financial statements were approved by the board of directors and authorised for issue on 18 June 2020 and are signed on its behalf by:
Mr W D Mayne
Director
Company Registration No. 05539272
MSS FACILITIES SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2020
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2018
12,500
595,044
607,544
Year ended 31 March 2019:
Loss and total comprehensive income for the year
-
(655)
(655)
Balance at 31 March 2019
12,500
594,389
606,889
Year ended 31 March 2020:
Profit and total comprehensive income for the year
-
123,874
123,874
Dividends
9
-
(362,500)
(362,500)
Balance at 31 March 2020
12,500
355,763
368,263
MSS FACILITIES SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
- 13 -
1
Accounting policies
Company information
MSS Facilities Services Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Galdames Place, Ocean Park, CARDIFF, South Glamorgan, UK, CF24 5RE.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’
:
Interest
income/expense and net gains/losses for each category of financial instrument;
basis
of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income
;
-
Section 26 ‘Share based Payment’
:
Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements
;
-
Section 33 ‘Related Party Disclosures’
:
Compensation for key management personnel
.
The financial statements of the company are consolidated in the financial statements of
MSS Group Limited.
These consolidated financial statements are available from its registered office
at MSS House, Galdames Place, Ocean Park, Cardiff, Wales, CF24 5RE.
1.2
Going concern
The financial statements have been prepared on a going concern basis which assumes the company will continue in operational existence for the foreseeable future. In making their assessment the directors have reviewed the balance sheet, the likely future cash flows of the business and have considered the working capital facilities that are in place at the date of signing the report.
true
Subsequent to the period end, as a consequence of the measures taken by the UK Government to manage the impact of Covid-19, the day to day operations of the business has been disrupted. It is difficult to evaluate all of the potential implications of these measures on the company’s trade, customers, suppliers and the wider economy. However, based on the information that is currently known, the directors have prepared re-forecasts for the year and taken steps to manage the company’s cash flow requirements during this period of uncertainty. At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and therefore continue to adopt the going concern basis.
MSS FACILITIES SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 14 -
1.3
Turnover
Turnover represents amounts recovered on contracts net of VAT. Turnover is recognised when the services are provided.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that
it is probable will be
recover
ed
.
1.4
Intangible fixed assets - goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2005, is being amortised evenly over its estimated useful life of twenty years.
1.5
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:
Plant and machinery
25% on cost
Fixtures, fittings & equipment
25% on cost
Computer equipment
25% on cost
Motor vehicles
25% on cost
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
.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible 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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
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.
MSS FACILITIES SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 15 -
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.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in 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.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
MSS FACILITIES SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 16 -
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans, 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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.9
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.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
MSS FACILITIES SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 17 -
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.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
MSS FACILITIES SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 18 -
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2020
2019
£
£
Turnover analysed by class of business
General industrial services
12,191,196
10,848,057
2020
2019
£
£
Turnover analysed by geographical market
United Kingdom
12,191,196
10,848,057
4
Operating profit
2020
2019
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
257
-
Fees payable to the company's auditor for the audit of the company's financial statements
5,000
9,475
Depreciation of owned tangible fixed assets
61,101
47,570
Depreciation of tangible fixed assets held under finance leases
102,891
87,856
Profit on disposal of tangible fixed assets
(1,500)
-
Amortisation of intangible assets
6,042
6,042
Operating lease charges
23,445
36,432
MSS FACILITIES SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 19 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Administrative staff
37
37
Cleaning and maintenance staff
322
308
Total
359
345
Their aggregate remuneration comprised:
2020
2019
£
£
Wages and salaries
6,916,810
6,024,426
Social security costs
605,723
522,431
Pension costs
144,141
85,982
7,666,674
6,632,839
6
Directors' remuneration
2020
2019
£
£
Remuneration for qualifying services
65,499
214,910
Remuneration disclosed above include the following amounts paid to the highest paid director:
2020
2019
£
£
Remuneration for qualifying services
-
120,000
As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for
that year.
7
Interest payable and similar expenses
2020
2019
£
£
Other interest on financial liabilities
3,672
-
Interest on finance leases and hire purchase contracts
21,348
19,509
25,020
19,509
MSS FACILITIES SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 20 -
8
Taxation
2020
2019
£
£
Current tax
UK corporation tax on profits for the current period
16,145
-
Deferred tax
Origination and reversal of timing differences
(7,314)
24,860
Total tax charge
8,831
24,860
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2020
2019
£
£
Profit before taxation
132,705
24,205
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2019: 19.00%)
25,214
4,599
Tax effect of expenses that are not deductible in determining taxable profit
4,602
20,484
Tax effect of income not taxable in determining taxable profit
(285)
-
Tax effect of utilisation of tax losses not previously recognised
(29,384)
43,286
Group relief
-
(25,253)
Permanent capital allowances in excess of depreciation
15,997
(24,576)
Under/(over) provided in prior years
-
6,320
Deferred tax adjustments in respect of prior years
(7,313)
-
Taxation charge for the year
8,831
24,860
9
Dividends
2020
2019
£
£
Interim paid
362,500
-
MSS FACILITIES SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 21 -
10
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2019 and 31 March 2020
120,845
Amortisation and impairment
At 1 April 2019
84,767
Amortisation charged for the year
6,042
At 31 March 2020
90,809
Carrying amount
At 31 March 2020
30,036
At 31 March 2019
36,078
Goodwill relates to the acquisition of shares in MEM Group Plc on 31 October 2005. Amortisation is being calculated over its economic life of 20 years.
11
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2019
678,614
300,897
20,712
295,852
1,296,076
Additions
52,643
200
-
18,000
70,843
Disposals
(6,250)
-
-
-
(6,250)
At 31 March 2020
725,007
301,097
20,712
313,853
1,360,669
Depreciation and impairment
At 1 April 2019
395,484
199,988
5,609
194,795
795,878
Depreciation charged in the year
67,241
57,737
5,178
33,836
163,992
Eliminated in respect of disposals
(6,250)
-
-
-
(6,250)
At 31 March 2020
456,475
257,726
10,787
228,632
953,620
Carrying amount
At 31 March 2020
268,532
43,371
9,925
85,221
407,049
At 31 March 2019
283,130
100,909
15,103
101,057
500,199
MSS FACILITIES SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
11
Tangible fixed assets
(Continued)
- 22 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2020
2019
£
£
Plant and machinery
90,673
133,435
Fixtures, fittings & equipment
-
29,669
Motor vehicles
54,138
84,141
144,811
247,245
12
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
3,155,227
2,894,533
Gross amounts owed by contract customers
38,230
355,973
Corporation tax recoverable
-
18,592
Amounts owed by group undertakings
1,720,542
1,751,142
Other debtors
180,523
401,558
Prepayments and accrued income
57,986
44,297
5,152,508
5,466,095
13
Creditors: amounts falling due within one year
2020
2019
Notes
£
£
Obligations under finance leases
15
81,369
178,308
Trade creditors
494,150
962,083
Amounts owed to group undertakings
2,076,854
1,380,388
Corporation tax
17,691
6,350
Other taxation and social security
576,732
485,272
Other creditors
1,932,696
1,979,462
Accruals and deferred income
381,232
233,405
5,560,724
5,225,268
Included within other creditors is £1,932,696 (
201
9
-
£1,979,462) in relation to balances drawn down on the company's invoice discounting facility at the year end. The invoice discounting creditor is secured by a fixed charge over all of the debts purchased from the company and their associated rights and fixed and floating charges covering all property or undertaking of the company.
MSS FACILITIES SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 23 -
14
Creditors: amounts falling due after more than one year
2020
2019
Notes
£
£
Obligations under finance leases
15
55,773
153,420
15
Finance lease obligations
2020
2019
Future minimum lease payments due under finance leases:
£
£
Within one year
81,369
178,308
In two to five years
55,773
153,420
137,142
331,728
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
16
Provisions for liabilities
2020
2019
Notes
£
£
Deferred tax liabilities
17
61,509
68,823
17
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2020
2019
Balances:
£
£
ACAs
61,509
68,823
2020
Movements in the year:
£
Liability at 1 April 2019
68,823
Other
(7,314)
Liability at 31 March 2020
61,509
MSS FACILITIES SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
17
Deferred taxation
(Continued)
- 24 -
The deferred tax liability set out above is expected to reverse in line with the associated depreciation rates and relates to accelerated capital allowances that are expected to mature within the same period.
18
Retirement benefit schemes
2020
2019
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
144,141
85,982
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.
19
Share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
12,500 Ordinary of £1 each
12,500
12,500
20
Financial commitments, guarantees and contingent liabilities
A cross guarantee exists between MSS Group Limited and its subsidiary companies regarding security over loan and banking facilities provided to MSS Group Limited from
Lloyds
Bank Plc.
21
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2020
2019
£
£
Within one year
19,569
35,558
Between two and five years
4,816
24,455
24,385
60,013
22
Related party transactions
The company has taken advantage of the exemption under Section 33.1a of FRS 102 and has not disclosed details of transactions or balances with other wholly-owned group companies.
2020-03-31
2019-04-01
false
CCH Software
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Mr R Little
Mr R Little
Mr J Jones
05539272
2019-04-01
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05539272
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2019-04-01
2020-03-31
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2020-03-31
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2019-03-31
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2019-04-01
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