Company Registration No. SC281107 (Scotland)
MIDTON ACRYLICS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2020
PAGES FOR FILING WITH REGISTRAR
MIDTON ACRYLICS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
MIDTON ACRYLICS LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2020
31 August 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
3
653,391
742,473
Current assets
Stocks
226,953
263,638
Debtors
5
2,611,632
2,324,852
Cash at bank and in hand
245,714
200,145
3,084,299
2,788,635
Creditors: amounts falling due within one year
6
(297,775)
(275,533)
Net current assets
2,786,524
2,513,102
Total assets less current liabilities
3,439,915
3,255,575
Creditors: amounts falling due after more than one year
7
(157,951)
(24,674)
Provisions for liabilities
(53,284)
(62,946)
Net assets
3,228,680
3,167,955
Capital and reserves
Called up share capital
8
5,000
5,000
Share premium account
8,119
8,119
Revaluation reserve
9
128,619
141,241
Profit and loss reserves
3,086,942
3,013,595
Total equity
3,228,680
3,167,955
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 August 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
MIDTON ACRYLICS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 AUGUST 2020
31 August 2020
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 29 June 2021 and are signed on its behalf by:
Mr C Cameron
Director
Company Registration No. SC281107
MIDTON ACRYLICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2020
- 3 -
1
Accounting policies
Company information
Midton Acrylics Limited is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
Unit 11, Kilmory Industrial Estate, Lochgilphead, Argyll, PA31 8RR.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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, modified to include the revaluation of fixed assets and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section
399
of the
Companies Act 2006 not to prepare consolidated accounts
, on the basis that the group of which this is the parent qualifies as a small group
. The financial statements present information about the company as an individual entity and not about its group
.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business
, and
is shown net of VAT
.
1.3
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:
Heritable property
2% straight line
Plant and machinery
5%, 10% and 20% straight line
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
.
1.4
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.
1.5
Stocks
Stocks are stated at the lower of cost and
net realisable value.
MIDTON ACRYLICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2020
1
Accounting policies
(Continued)
- 4 -
1.6
Cash at bank and in hand
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.
1.7
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.
1.8
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
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.
1.10
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.
MIDTON ACRYLICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2020
1
Accounting policies
(Continued)
- 5 -
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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.
1.13
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
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 are included in the profit and loss account for the period.
1.15
Revaluation of tangible fixed assets
At the date of transition to FRS102 the company elected to treat the revalued assets as "deemed cost" with the assets being depreciated over there remaining useful life. Any excess depreciation charge resulting from the revaluation is transferred from the revaluation reserve to profit and loss reserves.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 46
(2019 - 40).
MIDTON ACRYLICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2020
- 6 -
3
Tangible fixed assets
Heritable property
Plant and machinery
Total
£
£
£
Cost
At 1 September 2019
412,400
641,192
1,053,592
Additions
16,404
16,404
At 31 August 2020
412,400
657,596
1,069,996
Depreciation and impairment
At 1 September 2019
40,200
270,919
311,119
Depreciation charged in the year
8,248
97,238
105,486
At 31 August 2020
48,448
368,157
416,605
Carrying amount
At 31 August 2020
363,952
289,439
653,391
At 31 August 2019
372,200
370,273
742,473
MIDTON ACRYLICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2020
- 7 -
4
Intangible fixed assets
Goodwill
£
Cost
At 1 September 2019
372,300
Disposals
(372,300)
At 31 August 2020
Amortisation and impairment
At 1 September 2019
372,300
Disposals
(372,300)
At 31 August 2020
Carrying amount
At 31 August 2020
At 31 August 2019
5
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
349,432
442,720
Amounts owed by group undertakings
2,086,520
1,710,175
Other debtors
130,379
152,044
Prepayments and accrued income
45,301
19,913
2,611,632
2,324,852
6
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans
6,975
Obligations under finance leases
13,458
13,458
Trade creditors
71,866
91,205
Corporation tax
62,369
42,989
Other taxation and social security
79,022
42,687
Other creditors
7,855
18,711
Accruals and deferred income
56,230
66,483
297,775
275,533
MIDTON ACRYLICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2020
- 8 -
7
Creditors: amounts falling due after more than one year
2020
2019
£
£
Bank loans and overdrafts
146,736
Obligations under finance leases
11,215
24,674
157,951
24,674
8
Called up share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
5000 Ordinary Shares of £1 each
5,000
5,000
9
Revaluation reserve
2020
2019
£
£
At the beginning of the year
141,241
156,720
Transfer to retained earnings
(12,622)
(15,479)
At the end of the year
128,619
141,241
11
Control
The company is ultimately under the control of Midton Holdings Limited by virtue of owning 100% of the issued share capital of the company.