Company Registration No. 04357888 (England and Wales)
MICHAEL SCHMIDT & PARTNER LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2017
PAGES FOR FILING WITH REGISTRAR
MICHAEL SCHMIDT & PARTNER LIMITED
COMPANY INFORMATION
Directors
Mr C P Oddie
Mr P J Thomas
Mrs D Wake
Mr P I Dollin
(Appointed 28 November 2016)
Mr J Stone
(Appointed 2 May 2017)
Company number
04357888
Registered office
Chandlery Building
Hamble Point Marina
Hamble
Southampton
SO31 4NB
Accountants
MHA Moore and Smalley
Kendal House
Murley Moss Business Village
Oxenholme Road
Kendal
LA9 7RL
MICHAEL SCHMIDT & PARTNER LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
MICHAEL SCHMIDT & PARTNER LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2017
31 August 2017
- 1 -
2017
2016
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
7,822
9,780
Tangible assets
4
2,465
3,385
Current assets
Debtors
5
42,728
47,941
Cash at bank and in hand
291,421
119,793
334,149
167,734
Creditors: amounts falling due within one year
6
(294,910)
(119,958)
Net current assets
39,239
47,776
Total assets less current liabilities
49,526
60,941
Provisions for liabilities
(468)
(541)
Net assets
49,058
60,400
Capital and reserves
Called up share capital
7
803
803
Capital redemption reserve
20
20
Profit and loss reserves
48,235
59,577
Total equity
49,058
60,400
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 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
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.
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.
MICHAEL SCHMIDT & PARTNER LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 AUGUST 2017
31 August 2017
- 2 -
The financial statements were approved by the board of directors and authorised for issue on
29 January 2018 and are signed on its behalf by:
2018-01-29
Mr C P Oddie
Mr J Stone
Director
Director
Company Registration No. 04357888
MICHAEL SCHMIDT & PARTNER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2017
- 3 -
1
Accounting policies
Company information
Michael Schmidt & Partner Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Chandlery Building, Hamble Point Marina, Hamble, Southampton, SO31 4NB.
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. The principal accounting policies adopted are set out below.
These financial statements for the year ended 31 August 2017
are the
first
financial statements of Michael Schmidt & Partner Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 September 2015. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.
1.2
Going concern
After making the appropriate enquiries, the directors have concluded that the company will be able to meet its financial obligations and will continue to generate positive free cash flow for the foreseeable future and therefore have a reasonable expectation the company has adequate resources to continue in operational existence for the foreseeable future, and accordingly, consider it appropriate to adopt the going concern basis in preparing the accounts.
1.3
Turnover
Turnover represents amounts receivable for goods, services and commission net of VAT and trade discounts, to the extent that the company has a right to consideration arising from the performance of its contractual arrangements. As regards yacht sales the company recognises a sale upon delivery of the yacht.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
MICHAEL SCHMIDT & PARTNER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2017
1
Accounting policies
(Continued)
- 4 -
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
20% straight line
Fixtures, fittings & equipment
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
.
1.6
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.
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 at bank and in hand
Cash at bank and in hand
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.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
MICHAEL SCHMIDT & PARTNER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2017
1
Accounting policies
(Continued)
- 5 -
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 is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax, with the exception that deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax is measured on a discounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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.
1.13
Foreign currency translation
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 12 (2016 - 13).
MICHAEL SCHMIDT & PARTNER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2017
- 6 -
3
Intangible fixed assets
Goodwill
£
Cost
At 1 September 2016 and 31 August 2017
78,400
Amortisation and impairment
At 1 September 2016
68,620
Amortisation charged for the year
1,958
At 31 August 2017
70,578
Carrying amount
At 31 August 2017
7,822
At 31 August 2016
9,780
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 September 2016
21,675
Additions
649
At 31 August 2017
22,324
Depreciation and impairment
At 1 September 2016
18,290
Depreciation charged in the year
1,569
At 31 August 2017
19,859
Carrying amount
At 31 August 2017
2,465
At 31 August 2016
3,385
MICHAEL SCHMIDT & PARTNER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2017
- 7 -
5
Debtors (as restated)
2017
2016
Amounts falling due within one year:
£
£
Trade debtors
5,777
7,817
Amounts owed by group undertakings
6,262
10,334
Other debtors
28,620
27,569
Prepayments and accrued income
2,069
2,221
42,728
47,941
In previous year's financial statements, work in progress totalling £27,569 were disclosed within stock but are now disclosed within other debtors. The previous year's comparatives have been updated to reflect this change
6
Creditors: amounts falling due within one year
2017
2016
£
£
Trade creditors
16,171
9,811
Amounts due to group undertakings
18,551
19,318
Corporation tax
12,880
3,896
Other taxation and social security
12,357
25,451
Other creditors
234,951
61,482
294,910
119,958
Included within other creditors are monies held within the company's client account prior to completion of the sale and purchase of brokerage boats. A corresponding amount of £229,627 (2016: £52,573) is included within the bank balance of £291,421 (2016: £119,793).
7
Called up share capital
2017
2016
£
£
Ordinary share capital
Issued and fully paid
800 Ordinary shares of £1 each
800
800
1 'B' Non-voting share of £1 each
1
1
1 'C' Non-voting share of £1 each
1
1
1 'D' Non-voting share of £1 each
1
1
803
803
MICHAEL SCHMIDT & PARTNER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2017
- 8 -
8
Related party transactions
The company is a wholly owned subsidiary of Inspiration Marine Holdings Limited and in accordance with paragraph 33.1A of FRS102 is therefore not required to disclose transactions with that company and its fellow subsidiary.