REGISTERED NUMBER:
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Unaudited Financial Statements |
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for the Year Ended 31 December 2020 |
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Southern Mechanical Services Limited |
REGISTERED NUMBER:
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Unaudited Financial Statements |
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for the Year Ended 31 December 2020 |
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for |
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Southern Mechanical Services Limited |
Southern Mechanical Services Limited (Registered number: 06448749) |
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Contents of the Financial Statements |
for the Year Ended 31 December 2020 |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 4 |
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Southern Mechanical Services Limited |
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Company Information |
for the Year Ended 31 December 2020 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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ACCOUNTANTS: |
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Airport House |
Suite 43-45 |
Purley Way |
Croydon |
CR0 0XZ |
Southern Mechanical Services Limited (Registered number: 06448749) |
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Balance Sheet |
31 December 2020 |
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2020 | 2019 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
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CURRENT ASSETS |
Debtors | 5 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 6 | ( |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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PROVISIONS FOR LIABILITIES | 8 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital |
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Revaluation reserve | 9 |
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Retained earnings | 9 |
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The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
Southern Mechanical Services Limited (Registered number: 06448749) |
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Balance Sheet - continued |
31 December 2020 |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the Board of Directors and authorised for issue on
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Southern Mechanical Services Limited (Registered number: 06448749) |
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Notes to the Financial Statements |
for the Year Ended 31 December 2020 |
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1. | STATUTORY INFORMATION |
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Southern Mechanical Services Limited is a
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The presentation currency of the financial statements is the Pound Sterling (£). |
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The principal activity of the company continued to be that of supplying mechanical services for building installation. |
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2. | ACCOUNTING POLICIES |
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BASIS OF PREPARING THE FINANCIAL STATEMENTS |
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TURNOVER |
Turnover represents amounts receivable for goods and services net of VAT and trade discounts. |
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TANGIBLE FIXED ASSETS |
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Fixtures and fittings | - |
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Motor vehicles | - |
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Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of |
depreciation and any impairment losses. |
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No depreciation has been charged on freehold land and buildings, as it is the director's policy is to maintain the buildings in a continual state of sound repair. The directors consider that the lives of these assets are so long and the residual values so high that depreciation is not material. |
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GOVERNMENT GRANTS |
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received using the accrual model. |
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FINANCIAL INSTRUMENTS |
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. |
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Southern Mechanical Services Limited (Registered number: 06448749) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2020 |
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2. | ACCOUNTING POLICIES - continued |
TAXATION |
The tax expense represents the sum of the tax currently payable and deferred tax. |
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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. |
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Deferred tax |
Deferred tax is recognised in respect of all material timing differences that have originated but not reversed at the balance sheet date. |
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LEASES |
Rentals payable under operating leases, including any lease incentives received, are charged to income 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 asset are consumed. |
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PROVISIONS FOR LIABILITIES |
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. |
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Provisions are charged as an expense to the Statement of income and retained earnings in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. |
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When payments are eventually made, they are charged to the provision carried in the Balance sheet. |
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GOING CONCERN |
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. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was NIL (2019 -
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Southern Mechanical Services Limited (Registered number: 06448749) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2020 |
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4. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | and | Motor |
property | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 January 2020 |
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Additions |
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Disposals |
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Revaluations |
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At 31 December 2020 |
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DEPRECIATION |
At 1 January 2020 |
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Charge for year |
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Eliminated on disposal |
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At 31 December 2020 |
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NET BOOK VALUE |
At 31 December 2020 |
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At 31 December 2019 |
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Cost or valuation at 31 December 2020 is represented by: |
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Fixtures |
Freehold | and | Motor |
property | fittings | vehicles | Totals |
£ | £ | £ | £ |
Valuation in 2020 | 89,774 | - | - | 89,774 |
Cost | 35,226 | 15,641 | 19,725 | 70,592 |
125,000 | 15,641 | 19,725 | 160,366 |
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The fair value of the property has been arrived at on the basis of a valuation carried out by the directors at the balance sheet date based on their opinion of the open market value at that date. Deferred tax has been calculated on the revalued amounts and provided for within the financial statements. |
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5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Trade debtors |
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Other debtors |
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The directors consider the carrying value of trade and other receivables approximate to their fair values. |
Southern Mechanical Services Limited (Registered number: 06448749) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2020 |
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6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Bank loans and overdrafts |
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Trade creditors |
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Taxation and social security |
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Other creditors |
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The directors consider the carrying amounts of current liabilities approximate to their fair values. |
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7. | LEASING AGREEMENTS |
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Minimum lease payments under non-cancellable operating leases fall due as follows: |
2020 | 2019 |
£ | £ |
Within one year |
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8. | PROVISIONS FOR LIABILITIES |
2020 | 2019 |
£ | £ |
Deferred tax | 20,227 | 2,873 |
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Deferred |
tax |
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Balance at 1 January 2020 |
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Provided during year |
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Balance at 31 December 2020 |
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9. | RESERVES |
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Profit and Loss reserves |
The Profit and loss account comprises all current and prior period retained profit and losses after deducting any distributions made to the company's shareholders. This is a distributable reserve. |
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Revaluation reserves |
Revaluation reserves consists of fair value adjustments of £89,774 less the corresponding deferred tax calculated on the fair value of £17,057 in relation to freehold properties. This is a non-distributable reserve. |
Southern Mechanical Services Limited (Registered number: 06448749) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2020 |
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10. | RELATED PARTY TRANSACTIONS |
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At the balance sheet date included in trade debtors are amounts due from Southern Industrial Pipeline Services Ltd of £81,096 (2019 - £114,324). |
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At the balance sheet date included in trade creditors are amounts due to Southern Industrial Pipeline Services Ltd of £43,707 (2019 - £4,785). |
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At the balance sheet date included in other debtors were amounts of £14,339 (2019 - £14,339) due from Southern Industrial Pipeline Services Limited, a connected company in which R Austin is the director. |
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As at the balance sheet date, included in other creditors are amounts due to directors, R Austin of £48,271 (2019 - £36,271) and P Martin of £650 (2019 - £650). |
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11. | EVENTS DURING THE REPORTING PERIOD |
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The Coronavirus (COVID-19) has emerged globally resulting in a significant impact on businesses worldwide and the UK government continued to impose restrictions in 2021. As a result some business operations have been restricted, however the company continues to operate using alternative methods and remote working. Hence financial statements do not include any adjustments that might result from the outcome of this uncertainty. The directors are continuing to monitor, assess and act to the current changing environment in order to position the company to ensure its future success. |