Company Registration No. 03684482 (England and Wales)
MAINS ELECTRICAL DISTRIBUTORS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2016
PAGES FOR FILING WITH REGISTRAR
MAINS ELECTRICAL DISTRIBUTORS LIMITED
COMPANY INFORMATION
Directors
Mr D Ball
Mrs J Ball
Secretary
Mr D Ball
Company number
03684482
Registered office
Unit 2
Spaces Business Centre
Greatham Street
Longhill Industrial Estate
Hartlepool
TS25 1PU
Accountants
Evolution
Wynyard Park House
Wynyard Avenue
Wynyard
TS22 5TB
Bankers
Yorkshire Bank Plc
118 - 120 York Road
Hartlepool
TS26 9DE
MAINS ELECTRICAL DISTRIBUTORS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
4 - 8
MAINS ELECTRICAL DISTRIBUTORS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2016
31 December 2016
- 1 -
2016
2015
Notes
£
£
£
£
Fixed assets
Tangible assets
3
23,514
34,818
Current assets
Stocks
79,360
79,751
Debtors
4
302,075
285,103
Cash at bank and in hand
57,193
48,225
438,628
413,079
Creditors: amounts falling due within one year
5
(254,702)
(254,382)
Net current assets
183,926
158,697
Total assets less current liabilities
207,440
193,515
Creditors: amounts falling due after more than one year
6
(3,960)
(13,421)
Provisions for liabilities
7
(782)
(1,599)
Net assets
202,698
178,495
Capital and reserves
Called up share capital
9
100
100
Profit and loss reserves
202,598
178,395
Total equity
202,698
178,495
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 December 2016 the company was entitled to exemption from audit under section 477 of the Companies Act 2006.
T he directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
he directors acknowledge their responsibilities for complying with the requirements of the Act 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 .
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.
MAINS ELECTRICAL DISTRIBUTORS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2016
31 December 2016
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 30 May 2017 and are signed on its behalf by:
Mr D Ball
Director
Company Registration No. 03684482
MAINS ELECTRICAL DISTRIBUTORS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2016
- 3 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2015
100
173,381
173,481
Year ended 31 December 2015:
Profit and total comprehensive income for the year
-
75,014
75,014
Dividends
-
(70,000)
(70,000)
Balance at 31 December 2015
100
178,395
178,495
Year ended 31 December 2016:
Profit and total comprehensive income for the year
-
109,203
109,203
Dividends
-
(85,000)
(85,000)
Balance at 31 December 2016
100
202,598
202,698
MAINS ELECTRICAL DISTRIBUTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2016
- 4 -
1
Accounting policies
Company information
Mains Electrical Distributors Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Unit 2, Spaces Business Centre, Greatham Street, Longhill Industrial Estate, Hartlepool, TS25 1PU.
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 freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business , and is shown net of VAT and other sales related taxes . The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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.
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:
Leasehold land and buildings
Equal instalments over the period of the lease
Plant and machinery
25% reducing balance
Fixtures, fittings and equipment
20% straight line
Motor vehicles
25% reducing balance
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
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
are stated at the lower of cost and
estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
1.5
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.
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.
MAINS ELECTRICAL DISTRIBUTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
1
Accounting policies
(Continued)
- 5 -
1.6
Financial instruments
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are
recorded
at transaction price
.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are recognised at transaction price
.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
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. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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. 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 calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised.
1.9
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.
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
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 the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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 the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.
MAINS ELECTRICAL DISTRIBUTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
1
Accounting policies
(Continued)
- 6 -
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.
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 7 (2015 - 7).
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2016 and 31 December 2016
45,960
71,795
117,755
Depreciation and impairment
At 1 January 2016
33,703
49,234
82,937
Depreciation charged in the year
4,596
6,708
11,304
At 31 December 2016
38,299
55,942
94,241
Carrying amount
At 31 December 2016
7,661
15,853
23,514
At 31 December 2015
12,257
22,561
34,818
The net book value of tangible fixed assets include £14,808 (2015 - £20,769) in respect of assets held under finance leases or hire purchase contracts. The depreciation charge in respect of such assets amounted to £5,961 (2015 - £6,923) for the year.
4
Debtors
2016
2015
Amounts falling due within one year:
£
£
Trade debtors
264,085
252,895
Corporation tax recoverable
3,429
2,540
Other debtors
34,561
29,668
302,075
285,103
MAINS ELECTRICAL DISTRIBUTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
- 7 -
5
Creditors: amounts falling due within one year
2016
2015
£
£
Trade creditors
184,849
197,594
Corporation tax
28,877
20,654
Other taxation and social security
16,174
16,763
Other creditors
24,802
19,371
254,702
254,382
6
Creditors: amounts falling due after more than one year
2016
2015
£
£
Other creditors
3,960
13,421
The long-term loans are secured by fixed charges over the assets to which they relate.
7
Deferred taxation
2016
Movements in the year:
£
Liability at 1 January 2016
1,599
Credit to profit or loss
(817)
Liability at 31 December 2016
782
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
8
Retirement benefit schemes
2016
2015
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
6,192
6,000
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.
9
Called up share capital
2016
2015
£
£
Ordinary share capital
Issued and fully paid
100 ordinary shares of £1 each
100
100
MAINS ELECTRICAL DISTRIBUTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
- 8 -
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2016
2015
£
£
26,444
-
11
Directors' transactions
Interest free loans have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Mr D Ball - loan
-
11,737
(3,023)
8,714
11,737
(3,023)
8,714
Dividends totalling £63,750 (2015 - £52,500) were paid in the year in respect of shares held by the company's directors.