Grahams Machinery Sales Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 07653217 (England and Wales)

GRAHAMS MACHINERY SALES LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 OCTOBER 2019

Page

Company information

1

Balance sheet

2

Notes to the financial statements

4

Directors:

A M Graham

P J Graham

M P Graham

N W Graham

J R Graham

Registered office:

Deva House

Knutsford Way

Sealand Industrial Estate

Chester

Cheshire

CH1 4NX

Registered number:

07653217 (England and Wales)

Accountants:

John Davies and Co

St Andrews House

Yale Business Village

Ellice Way

Wrexham

Wrexham CB

LL13 7YL

Fixed assets

Intangible assets

4

500,000

583,333

Tangible assets

5

382,620

387,203

882,620

970,536

Current assets

Stocks

822,912

450,662

Debtors

6

1,998,803

1,210,336

Cash at bank and in hand

926

14,163

2,822,641

1,675,161

Creditors

Amounts falling due within one year

7

2,138,440

1,214,885

Net current assets

684,201

460,276

Total assets less current liabilities

1,566,821

1,430,812

Creditors

Amounts falling due after more than one year

8

-

(154,044

)

Provisions for liabilities

(67,756

)

(67,392

)

Net assets

1,499,065

1,209,376

Capital and reserves

Called up share capital

1,000

1,000

Retained earnings

1,498,065

1,208,376

Shareholders' funds

1,499,065

1,209,376

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 October 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 October 2019 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 24 July 2020 and were signed on its behalf by:

A M Graham - Director

J R Graham - Director

1.	Statutory information

Grahams Machinery Sales Limited is a private company, limited by shares , registered in England and

Wales. The company's registered number and registered office address can be found on the

Company Information page.

2.	Accounting policies

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover comprises revenue recognised by the company in respect of goods and services supplied

during the year, net of value added tax and trade discounts.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2011, is being amortised evenly over its estimated useful life of fifteen years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are

measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

15% on reducing balance

Fixtures & fittings

-

20% on reducing balance

Motor vehicles

-

25% on reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for

obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income

Statement, except to the extent that it relates to items recognised in other comprehensive income

or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been

enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed

at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods

different from those in which they are recognised in financial statements. Deferred tax is measured

using tax rates and laws that have been enacted or substantively enacted by the year end and that

are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is

probable that they will be recovered against the reversal of deferred tax liabilities or other future

taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling

at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate

of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving

at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the

period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the

company's pension scheme are charged to profit or loss in the period to which they relate.

3.	Employees and directors

The average number of employees during the year was 51 (2018 - 49 ) .

4.	Intangible fixed assets

Goodwill

£

Cost

At 1 November 2018

and 31 October 2019

1,250,000

Amortisation

At 1 November 2018

666,667

Charge for year

83,333

At 31 October 2019

750,000

Net book value

At 31 October 2019

500,000

At 31 October 2018

583,333

5.	Tangible fixed assets

Plant and

Fixtures

Motor

machinery

& fittings

vehicles

Totals

£

£

£

£

Cost

At 1 November 2018

136,278

428,583

349,773

914,634

Additions

36,750

46,330

16,250

99,330

Disposals

(5,106

)

-

-

(5,106

)

At 31 October 2019

167,922

474,913

366,023

1,008,858

Depreciation

At 1 November 2018

78,050

284,055

165,326

527,431

Charge for year

14,013

38,171

50,174

102,358

Eliminated on disposal

(3,551

)

-

-

(3,551

)

At 31 October 2019

88,512

322,226

215,500

626,238

Net book value

At 31 October 2019

79,410

152,687

150,523

382,620

At 31 October 2018

58,228

144,528

184,447

387,203

6.

Debtors: amounts falling due within one year

2019

2018

£

£

Trade debtors

1,906,069

1,129,816

Prepayments and accrued income

92,734

80,520

1,998,803

1,210,336

7.

Creditors: amounts falling due within one year

2019

2018

£

£

Bank loans and overdrafts

120,843

-

Other loans

119,844

119,735

Trade creditors

1,581,421

791,218

Corporation Tax

97,915

116,305

PAYE and National Insurance

28,801

22,885

VAT

140,736

107,202

Directors loan accounts

27,731

33,956

Accruals and deferred income

21,149

23,584

2,138,440

1,214,885

8.

Creditors: amounts falling due after more than one year

2019

2018

£

£

Other loans - 1-2 years

-

154,044

9.	Leasing agreements

Minimum lease payments under non-cancellable operating leases fall due as follows:

2019

2018

£

£

Within one year

223,950

126,662

Between one and five years

618,651

273,349

In more than five years

660,000

-

1,502,601

400,011

10.	Secured debts

The following secured debts are included within creditors:

2019

2018

£

£

Bank overdraft

120,843

-

The bank overdraft is secured by way of a debenture dated 6th July 2011 securing all monies due or

to become due to HSBC Bank Plc.

11.	Directors' advances, credits and guarantees

Included within note 8 'Creditors: amounts falling due within 1 year' are the following directors loan

account balances which existed as at 31st October 2019.

Mr A M Graham: £5,336 (2018: £5,336)

Mr M P Graham: £3,464 (2018: £3,861)

Mr P J Graham: £nil (2018: £332)

Mr N W Graham: £14,008 (2018: £15,795)

Mr J R Graham: £4,923 (2018: £7,344)

The loans are repayable on demand.

12.	Related party disclosures

Included within 'other loans' in note 8 is a loan of £45,080 (2018: £100,000) outstanding to Grahams

Estates Limited. Grahams Estates Limited is a limited company owned by the J D Graham Deceased

Trust in which the directors and their families have a beneficial interest.

Included within 'other loans' in note 8 is a loan of £20,720 (2018: £39,280) outstanding to the J D

Graham Deceased Trust.

As at 31st October 2019 the company had a loan of £54,044 (2018: £134,499) outstanding to Rapid

Heat Systems Limited, a limited company owned by all of the directors.The loan is included within

'other loans' in note 8.

The controlling party is A M Graham.

The company is under the equal ultimate control of the 5 directors.