Company Registration No. 08059389 (England and Wales)
HC M&E LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2019
HC M&E LIMITED
COMPANY INFORMATION
Directors
Mr S Haley
Mr K Jones
Mr N Lawlor
Secretary
Company number
08059389
Registered office
Jarodale House 7
Gregory Boulevard
Nottingham
NG7 6LB
Accountants
Bryden Johnson Limited
Kings Parade
Lower Coombe Street
Croydon
CR0 1AA
Business address
Maple House
118 High Street
Purley
Surrey
United Kingdom
CR8 2AD
HC M&E LIMITED
CONTENTS
Page
Directors' report
1
Accountants' report
2
Profit and loss account
3
Balance sheet
4
Notes to the financial statements
5 - 8
HC M&E LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2019
- 1 -
The directors present their annual report and financial statements for the year ended 31 May 2019.
Principal activities
The principal activity of the company continued to be that of providing mechanical and electrical building services designs.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr S Haley
Mr K Jones
Mr N Lawlor
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Mr K Jones
Mr N Lawlor
Director
Director
18 November 2019
HC M&E LIMITED
CHARTERED ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF HC M&E LIMITED FOR THE YEAR ENDED 31 MAY 2019
- 2 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of HC M&E Limited for the year ended 31 May 2019 set out on pages 3 to 8 from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/members/regulations-standards-and-guidance.
This report is made solely to the Board of Directors of HC M&E Limited, as a body, in accordance with the terms of our engagement letter dated 25 August 2016. Our work has been undertaken solely to prepare for your approval the financial statements of HC M&E Limited and state those matters that we have agreed to state to the Board of Directors of HC M&E Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than HC M&E Limited and its Board of Directors as a body, for our work or for this report.
It is your duty to ensure that HC M&E Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of HC M&E Limited. You consider that HC M&E Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of HC M&E Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Bryden Johnson Limited
28 November 2019
Chartered Accountants
Kings Parade
Lower Coombe Street
Croydon
CR0 1AA
HC M&E LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MAY 2019
- 3 -
2019
2018
£
£
Turnover
398,860
421,219
Cost of sales
(327,479)
(284,047)
Gross profit
71,381
137,172
Administrative expenses
(61,162)
(59,237)
Operating profit
10,219
77,935
Interest payable and similar expenses
-
(2,947)
Profit before taxation
10,219
74,988
Tax on profit
(2,385)
(5,902)
Profit for the financial year
7,834
69,086
HC M&E LIMITED
BALANCE SHEET
AS AT 31 MAY 2019
31 May 2019
- 4 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
3
2,122
2,871
Investments
4
280
280
2,402
3,151
Current assets
Debtors
5
97,251
94,805
Cash at bank and in hand
32,154
73,192
129,405
167,997
Creditors: amounts falling due within one year
6
(102,258)
(145,433)
Net current assets
27,147
22,564
Total assets less current liabilities
29,549
25,715
Capital and reserves
Called up share capital
7
6,794
6,794
Other reserves
11,448
11,448
Profit and loss reserves
11,307
7,473
Total equity
29,549
25,715
For the financial year ended 31 May 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 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 18 November 2019 and are signed on its behalf by:
Mr K Jones
Mr N Lawlor
Director
Director
Company Registration No. 08059389
HC M&E LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2019
- 5 -
1
Accounting policies
Company information
HC M&E Limited is a private company limited by shares incorporated in England and Wales. The registered office is Jarodale House 7, Gregory Boulevard, Nottingham, NG7 6LB.
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 services 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:
Fixtures, fittings & equipment
Over 3 years
Computer equipment
Over 5 years
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
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.
1.5
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.
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.
HC M&E LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2019
1
Accounting policies
(Continued)
- 6 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
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.
1.6
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.
1.7
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.
1.8
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.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 5 (2018 - 5).
HC M&E LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2019
- 7 -
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 June 2018 and 31 May 2019
22,031
Depreciation and impairment
At 1 June 2018
19,160
Depreciation charged in the year
749
At 31 May 2019
19,909
Carrying amount
At 31 May 2019
2,122
At 31 May 2018
2,871
4
Fixed asset investments
2019
2018
£
£
Investments
280
280
The company has not designated any financial assets that are not classified as financial assets at fair value through profit or loss.
Movements in fixed asset investments
Investments other than loans
£
Cost or valuation
At 1 June 2018 & 31 May 2019
280
Carrying amount
At 31 May 2019
280
At 31 May 2018
280
HC M&E LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2019
- 8 -
5
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
75,885
61,833
Other debtors
21,366
32,972
97,251
94,805
Trade debtors disclosed above are measured at amortised cost.
6
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
8,696
1,608
Corporation tax
2,385
5,902
Other taxation and social security
25,083
21,185
Other creditors
66,094
116,738
102,258
145,433
7
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
609,374 Ordinary shares of 1p each
6,094
6,094
35,000 Ordinary A shares of 1p each
350
350
35,000 Ordinary B shares of 1p each
350
350
6,794
6,794
8
Related party transactions
At the year end the following amounts were included within other creditors, £701 (2018: £Nil) was due to Haley's Limited and £4,622 (2018: £33,682) was due to HC QS Limited.
At the year end the following amounts were included within other debtors £Nil (2018: £20,165) was due from Haley's Limited.
Included within other debtors is a balance of £10,026 (2018: £1,820) due from Clean Air Roads Limited, an associate of the business.
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