Company Registration No. 01187400 (England and Wales)
MICON COMPONENTS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
PAGES FOR FILING WITH REGISTRAR
MICON COMPONENTS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
MICON COMPONENTS LIMITED
BALANCE SHEET
AS AT 31 MARCH 2019
31 March 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
3
272,486
292,433
Current assets
Stocks
25,257
25,803
Debtors
4
356,870
417,798
Cash at bank and in hand
80,897
87,189
463,024
530,790
Creditors: amounts falling due within one year
5
(243,488)
(258,915)
Net current assets
219,536
271,875
Total assets less current liabilities
492,022
564,308
Creditors: amounts falling due after more than one year
6
(137,821)
(164,729)
Provisions for liabilities
(13,400)
(16,300)
Net assets
340,801
383,279
Capital and reserves
Called up share capital
8
2,400
2,400
Share premium account
49,400
49,400
Revaluation reserve
76,099
78,156
Capital redemption reserve
1,800
1,800
Profit and loss reserves
211,102
251,523
Total equity
340,801
383,279
MICON COMPONENTS LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2019
31 March 2019
- 2 -
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 March 2019 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.
The 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.
The financial statements were approved by the board of directors and authorised for issue on 10 June 2019 and are signed on its behalf by:
S Litchfield
Director
Company Registration No. 01187400
MICON COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
- 3 -
1
Accounting policies
Company information
Micon Components Limited is a private company, limited by shares and incorporated in England and Wales. The registered office is 65 Forncett Street, Sheffield, S4 7QG.
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 amounts 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.
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.
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.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Freehold land
Not depreciated
Freehold and leasehold land and buildings
2% on cost
Plant and machinery
20% on cost
Fixtures, fittings and equipment
15% 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.
Prior to applying FRS 102, Micon Components Limited used a revaluation method to value the land and buildings held by the company. FRS 102 gives the option of applying an exemption to use the latest valuation held as the deemed cost at the date of transition, which has been applied by Micon Components Limited. There have been no changes to the reported reserves or profit or loss at either the date of transition or the comparative year end.
MICON COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
1
Accounting policies
(Continued)
- 4 -
1.4
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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 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.
1.6
Cash and cash equivalents
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.
1.7
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.
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.
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 receipts 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. Amounts 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.
MICON COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
1
Accounting policies
(Continued)
- 5 -
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.
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.
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 the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.
MICON COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
1
Accounting policies
(Continued)
- 6 -
1.13
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 13 (2018 - 13).
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 April 2018
265,696
830,412
1,096,108
Additions
-
16,004
16,004
Disposals
-
(7,495)
(7,495)
At 31 March 2019
265,696
838,921
1,104,617
Depreciation and impairment
At 1 April 2018
58,800
744,876
803,676
Depreciation charged in the year
4,900
28,706
33,606
Eliminated in respect of disposals
-
(5,151)
(5,151)
At 31 March 2019
63,700
768,431
832,131
Carrying amount
At 31 March 2019
201,996
70,490
272,486
At 31 March 2018
206,896
85,537
292,433
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2019
2018
£
£
Plant and machinery
69,612
83,132
Depreciation charge for the year in respect of leased assets
27,180
38,553
MICON COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
3
Tangible fixed assets
(Continued)
- 7 -
Freehold land and buildings with a carrying amount of £201,996 (2018 - £206,896) have been pledged, and an unlimited debenture has been pledged, to secure the borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.
4
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
242,963
225,115
Amounts owed by group undertakings
108,972
188,973
Other debtors
4,935
3,710
356,870
417,798
5
Creditors: amounts falling due within one year
2019
2018
£
£
Bank loans and overdrafts
9,188
8,930
Trade creditors
123,175
110,682
Corporation tax
35,628
27,649
Other taxation and social security
33,603
63,478
Other creditors
41,894
48,176
243,488
258,915
The aggregate amount of creditors for which security has been given amounted to £36,710 (2018 - £46,142).
6
Creditors: amounts falling due after more than one year
2019
2018
£
£
Bank loans and overdrafts
105,433
114,475
Other creditors
32,388
50,254
137,821
164,729
The aggregate amount of creditors for which security has been given amounted to £124,065 (2018 - £150,593).
Creditors which fall due after five years are as follows:
2019
2018
£
£
Payable by instalments
66,175
76,570
MICON COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 8 -
7
Deferred income
2019
2018
Goverment grants
£
£
Balance at 1 April 2018
14,136
14,518
Amortisation in the year
(382)
(382)
Balance at 31 March 2019
13,754
14,136
8
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
2,400 Ordinary shares of £1 each
2,400
2,400
2,400
2,400
9
Financial commitments, guarantees and contingent liabilities
Total financial commitments, guarantees and contingencies which are not included in the balance sheet amount to £1,050 (2018 - £1,650).
10
Parent company
SR & SR Holdings Limited is the ultimate parent company of Micon Components Limited, their registered office continues to be the same as that of Micon Components Limited.
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