Main Systems Limited - Period Ending 2014-09-30

Registration number: 01016456

Main Systems Limited

Annual Report and Financial Statements

for the Year Ended 30 September 2014
 

Blackman Terry LLP
Bolney Place
Cowfold Road
Bolney
Haywards Heath
West Sussex
RH17 5QT

Main Systems Limited
Contents

Company Information 1

Strategic Report 2

Directors' Report 3 to 4

Statement of Directors' Responsibilities 5

Independent Auditor's Report 6 to 7

Profit and Loss Account 8

Statement of Total Recognised Gains and Losses 9

Note of Historical Cost Profits and Losses 10

Balance Sheet 11

Cash Flow Statement 12 to 13

Notes to the Financial Statements 14 to 23

Main Systems Limited
Company Information

Chairman

Mr Steve Mainstone

Director

Mrs Margaret M A Mainstone

Company secretary

Mrs Margaret M A Mainstone

Registered office

Beach Road Newhaven East Sussex BN9 0BX

Bankers

Natwest Bank PLC

Auditors

Blackman Terry LLP Bolney Place Cowfold Road Bolney Haywards Heath West Sussex RH17 5QT

Page 1

Main Systems Limited
Strategic Report for the Year Ended 30 September 2014

The directors present their strategic report for the year ended 30 September 2014.

Business review

Fair review of the business

The busimess suffered a significant decrease in turnover during the year. Some of this was the result of a disproportionate protraction in the placement of contracts and some was due to a significant retail client reducing their requirement. Gross profit increased slightly to 43% indicating that both pricing and material cost control remained intact, however the fixed overhead coupled with additional spend on IT, R&D and pensions, hurt the bottom line.

Measures have been put in place to assist the management team in meeting the requirements of a changing market and client base and the contruction industry, from which the company draws most of its business, is recovering. We expect selling prices to remain under pressure through 2015 and material prices to increase slightly, however this is not expected to significantly affect our results.

A large volume of testing to a recently published British Standard will put pressure on the business' cash resources and will reduce the available profit for 2015 but the business has sufficient funding in place to accommodate this. We believe that it will be a tough year, given the additional spend on testing, but we are confident that we will make a significant step forward.

The company's key financial and other performance indicators during the year were as follows:

	Unit	2014	2013
Turnover	£	3,393,778	5,029,939
Turnover growth/(fall)	%	(33)	12
Gross profit margin	%	43	42
Profit/(Loss) before tax	£	(367,525)	337,066

Principal risks and uncertainties

The principal risks and uncertainties facing the company are considered to be:
- The company is dependent upon obtaining work through a competitive bidding process;
- Fluctuations in the price and supply of raw materials used to manufacture our product;
- The level of general economic activity affects the number and size of capital projects undertaken by our existing and potential customers; and
- The withdrawal of the British Standard for our product and the certification attached.

Approved by the Board on 31 March 2015 and signed on its behalf by:

.........................................
Mr Steve Mainstone
Chairman

Page 2

Main Systems Limited
Directors' Report for the Year Ended 30 September 2014

The directors present their report and the financial statements for the year ended 30 September 2014.

Directors of the company

The directors who held office during the year were as follows:

Mr Steve Mainstone - Chairman

Mrs Margaret M A Mainstone

Financial instruments

Objectives and policies

The directors have reviewed their financial risk management policies and consider them to be adequate.

Price risk, credit risk, liquidity risk and cash flow risk

The business' principal financial instruments comprise bank balances, bank overdrafts, trade debtors, trade creditors to the business and finance lease agreements. The main purpose of these instruments is to finance the business' operations.

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts. All of the business' cash balances are held in such a way that achieves a competitive rate of interest. The business makes use of money market facilities where funds are available.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debts.

Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Loans comprise loans from directors and from financial institutions. The interest rate and monthly repayments on the loans from financial institutions are variable. The business manages the liquidity risk by ensuring that there are sufficient funds to meet the payments.

The business is a lessee in respect of finance leased assets. The liquidity risk in respect of these is managed by ensuring that there are sufficient funds to meet the payments.

Research and development

The business carries out research and development in several areas. New and innovative product to meet the core client base and inprovements to materials and performance on existing product. In addition, the business is always looking to introduce sympathetic products to fully utilise its facilities and increase its exposure to different markets and it is constantly developing the in-house ERP systems.

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and which they know the auditor is unaware of.

Approved by the Board on 31 March 2015 and signed on its behalf by:

Page 3

Main Systems Limited
Directors' Report for the Year Ended 30 September 2014
......... continued

.........................................
Mr Steve Mainstone
Chairman

Page 4

Main Systems Limited
Statement of Directors' Responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the

directors

to prepare financial statements for each financial year. Under that law the

directors have

elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the

directors

must not approve the financial statements unless

they are

satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the

directors are

required to:
•
select suitable accounting policies and apply them consistently;
•
make judgements and accounting estimates that are reasonable and prudent
; and
•
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The

directors are

responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable

them

to ensure that the financial statements comply with the Companies Act 2006.

They are

also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 5

Independent Auditor's Report to the Members of
Main Systems Limited

We have audited the financial statements of Main Systems Limited for the year ended 30 September 2014, set out on pages 8 to 23. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of directors and auditor

As explained more fully in the Statement of Directors' Responsibilities (set out on page 5), the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Annual Report and Financial Statements to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on the financial statements

In our opinion the financial statements:
•
give a true and fair view of the state of the company's affairs as at

30 September 2014

and of its

loss

for the

year

then ended;
•
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice
; and
•
have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

Page 6

Independent Auditor's Report to the Members of
Main Systems Limited
 
 ......... continued

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

•	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
•	the financial statements are not in agreement with the accounting records and returns; or
•	certain disclosures of directors’ remuneration specified by law are not made; or
•	we have not received all the information and explanations we require for our audit.

......................................
Jonathan Terry (Senior Statutory Auditor)
For and on behalf of Blackman Terry LLP, Statutory Auditor

Bolney Place
Cowfold Road
Bolney
Haywards Heath
West Sussex
RH17 5QT

31 March 2015

Page 7

Main Systems Limited
Profit and Loss Account for the Year Ended 30 September 2014

		Note			2014 £			2013 £
Turnover					3,393,778			5,029,939
Cost of sales					(1,934,973)			(2,912,656)
Gross profit					1,458,805			2,117,283
Administrative expenses					(1,818,951)			(1,773,083)
Operating (loss)/profit		2			(360,146)			344,200
Other interest receivable and similar income		5			656			968
Interest payable and similar charges		6			(8,035)			(8,102)
(Loss)/profit on ordinary activities before taxation					(367,525)			337,066
Tax on (loss)/profit on ordinary activities		7			65,427			(66,953)
(Loss)/profit for the financial year		16			(302,098)			270,113

Turnover and operating profit derive wholly from continuing operations.

The notes on pages 14 to 23 form an integral part of these financial statements.
Page 8

Main Systems Limited
Statement of Total Recognised Gains and Losses for the Year Ended 30 September 2014

		Note			2014 £			2013 £
(Loss)/profit for the financial year					(302,098)			270,113
Unrealised surplus on revaluation of properties					115,625			-
Total recognised gains and losses relating to the year					(186,473)			270,113

The notes on pages 14 to 23 form an integral part of these financial statements.
Page 9

Main Systems Limited
Note of Historical Cost Profits and Losses for the Year Ended 30 September 2014

		2014 £			2013 £
Reported (loss)/profit on ordinary activities before taxation		(367,525)			337,066
Difference between historical cost depreciation charge and the actual depreciation charge on the revalued amount		(6,756)			(6,127)
Historical cost (loss)/profit on ordinary activities before taxation		(374,281)			330,939
Historical cost (loss)/profit for the year retained after taxation		(308,854)			263,986

The notes on pages 14 to 23 form an integral part of these financial statements.
Page 10

Main Systems Limited
(Registration number: 01016456)
Balance Sheet at 30 September 2014

		Note			2014 £			2013 £
Fixed assets
Tangible fixed assets		8			2,035,913			1,873,794
Current assets
Stocks		10			357,283			306,693
Debtors		11			790,648			1,199,679
Cash at bank and in hand					126,171			108,824
					1,274,102			1,615,196
Creditors: Amounts falling due within one year		12			(1,087,989)			(1,180,958)
Net current assets					186,113			434,238
Total assets less current liabilities					2,222,026			2,308,032
Creditors: Amounts falling due after more than one year		13			(182,409)			-
Provisions for liabilities		14			(1,526)			(22,365)
Net assets					2,038,091			2,285,667
Capital and reserves
Called up share capital		15			105			108
Share premium account		16			427,702			427,702
Revaluation reserve		16			919,739			810,870
Other reserves		16			13			10
Profit and loss account		16			690,532			1,046,977
Shareholders' funds		17			2,038,091			2,285,667

Approved and authorised for issue by the Board on 31 March 2015 and signed on its behalf by:

.........................................
Mr Steve Mainstone
Chairman

The notes on pages 14 to 23 form an integral part of these financial statements.
Page 11

Main Systems Limited
Cash Flow Statement for the Year Ended 30 September 2014

Reconciliation of operating loss/profit to net cash flow from operating activities

		2014 £			2013 £
Operating (loss)/profit		(360,146)			344,200
Depreciation, amortisation and impairment charges		68,022			54,232
Profit on disposal of fixed assets		(5,396)			(846)
Increase in stocks		(50,590)			(25,350)
Decrease/(increase) in debtors		434,092			(127,313)
(Decrease)/increase in creditors		(59,062)			50,021
Net cash inflow from operating activities		26,920			294,944

Cash flow statement

		2014 £			2013 £
Net cash inflow from operating activities		26,920			294,944
Returns on investments and servicing of finance
Interest received		656			968
Interest paid		(8,035)			(8,102)
		(7,379)			(7,134)
Taxation paid		(25,061)			-
Capital expenditure and financial investment
Purchase of tangible fixed assets		(114,516)			(23,842)
Sale of tangible fixed assets		5,396			4,300
		(109,120)			(19,542)
Net cash (outflow)/inflow before management of liquid resources and financing		(114,640)			268,268
Financing
Value of new loans obtained during the period		290,000			-
Repayment of loans and borrowings		(96,910)			(97,419)
Purchase of own shares		(61,103)			(183,308)
		131,987			(280,727)
Increase/(decrease) in cash		17,347			(12,459)

The notes on pages 14 to 23 form an integral part of these financial statements.
Page 12

Main Systems Limited
Cash Flow Statement for the Year Ended 30 September 2014......... continued

Reconciliation of net cash flow to movement in net debt

		Note			2014 £			2013 £
Increase/(decrease) in cash					17,347			(12,459)
Cash inflow from increase in loans					(290,000)			-
Cash outflow from repayment of loans					96,910			97,419
Change in net debt resulting from cash flows		20			(175,743)			84,960
Movement in net debt		20			(175,743)			84,960
Net funds/(debt) at 1 October		20			30,547			(54,413)
Net (debt)/funds at 30 September		20			(145,196)			30,547

The notes on pages 14 to 23 form an integral part of these financial statements.
Page 13

Main Systems Limited
Notes to the Financial Statements for the Year Ended 30 September 2014
......... continued

1	Accounting policies

Basis of preparation

The financial statements have been prepared under the historical cost convention.

Turnover

Turnover represents amounts chargeable, net of value added tax, in respect of the sale of goods and services to customers.

Depreciation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class	Depreciation method and rate
Land	Not depreciated
Buildings	1% Straight line basis
Plant and machinery	15% Reducing balance basis
Fixtures, Fittings and equipment	15% Reducing balance basis
Motor vehicles	25% Straight line basis
Computer Equipment	33.33% Straight line basis

Research and development

Research and development expenditure is written off as incurred.

Fixed asset investments

Fixed asset investments are stated at historical cost less provision for any diminution in value

Stock and work in progress

Stock and work in progress are valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Contracts that are at least 50% complete are valued at their sales value, and included in the Balance Sheet as amounts recoverable on contracts and in the Profit and loss account within sales. Provision is made for any foreseeable losses on all contracts, irrespective of the level of completion of the contract at the Balance Sheet date.

Deferred tax

Deferred tax is recognised, without discounting, in respect of all timing differences between the treatment of certain items for taxation and accounting purposes, which have arisen but not reversed by the balance sheet date, except as required by FRS19. Deferred tax is measured at the rates that are expected to apply in the periods when the timing differences are expected to reverse, based on the tax rates and law enacted at the balance sheet date.

Page 14

Main Systems Limited
Notes to the Financial Statements for the Year Ended 30 September 2014
......... continued

Hire purchase and leasing

Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability in the balance sheet. The corresponding dividends relating to the liability component are charged as interest expense in the profit and loss account.

Pensions

The company operates a defined contribution pension scheme. Contributions are recognised in the profit and loss account in the period in which they become payable in accordance with the rules of the scheme.

2	Operating (loss)/profit

Operating (loss)/profit is stated after charging:

		2014 £			2013 £
Operating leases - other assets		3,768			3,768
Auditor's remuneration - The audit of the company's annual accounts		5,999			5,999
Profit on sale of tangible fixed assets		(5,396)			(846)
Depreciation of owned assets		68,022			54,232

3	Particulars of employees

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

		2014 No.			2013 No.
Administration and support		32			32
Production		34			38
		66			70

The aggregate payroll costs were as follows:

Page 15

Main Systems Limited
Notes to the Financial Statements for the Year Ended 30 September 2014
......... continued

		2014 £			2013 £
Wages and salaries		1,630,575			1,723,851
Social security costs		163,188			174,901
Staff pensions		7,707			5,793
		1,801,470			1,904,545

4	Directors' remuneration

The directors' remuneration for the year was as follows:

		2014 £			2013 £
Remuneration		93,059			100,251
Company contributions paid to defined contribution schemes		300			300

During the year the number of directors who were receiving benefits and share incentives was as follows:

		2014 No.			2013 No.
Accruing benefits under defined contribution pension scheme		1			1

5	Other interest receivable and similar income

		2014 £			2013 £
Bank interest receivable		656			968

6	Interest payable and similar charges

		2014 £			2013 £
Interest on bank borrowings		3,518			3,791
Other interest payable		4,517			4,311
		8,035			8,102

Page 16

Main Systems Limited
Notes to the Financial Statements for the Year Ended 30 September 2014
......... continued

7

Taxation

Tax on (loss)/profit on ordinary activities

		2014 £			2013 £
Current tax
Corporation tax (credit)/charge		(44,588)			44,588
Deferred tax
Origination and reversal of timing differences		(20,839)			22,365
Total tax on (loss)/profit on ordinary activities		(65,427)			66,953

Factors affecting current tax charge for the year

Tax on (loss)/profit on ordinary activities for the year is higher than (2013 - lower than) the standard rate of corporation tax in the UK of 20% (2013 - 20%).

The differences are reconciled below:

		2014 £			2013 £
(Loss)/profit on ordinary activities before taxation		(367,525)			337,066
Corporation tax at standard rate		(73,505)			67,413
Accelerated capital allowances		(4,510)			3,247
Expenses not deductible for tax purposes		612			671
Losses carried back		48,350			-
Enhanced R&D allowance		(44,588)			-
Losses carried forward		29,053			-
Losses brought forward		-			(26,743)
Total current tax		(44,588)			44,588

Page 17

Main Systems Limited
Notes to the Financial Statements for the Year Ended 30 September 2014
......... continued

8	Tangible fixed assets

		Freehold land and buildings £			Plant and machinery £			Fixtures and fittings £			Motor vehicles £			Total £
Cost or valuation
At 1 October 2013		1,750,000			1,180,030			395,622			116,181			3,441,833
Revaluation		50,000			-			-			-			50,000
Additions		-			-			20,982			93,534			114,516
Disposals		-			-			(6,345)			(39,800)			(46,145)
At 30 September 2014		1,800,000			1,180,030			410,259			169,915			3,560,204
Depreciation
At 1 October 2013		52,500			1,057,155			345,249			113,135			1,568,039
Charge for the year		13,125			18,431			20,361			16,105			68,022
Eliminated on disposals		-			-			(6,345)			(39,800)			(46,145)
Writeback to recoverable amount		(65,625)			-			-			-			(65,625)
At 30 September 2014		-			1,075,586			359,265			89,440			1,524,291
Net book value
At 30 September 2014		1,800,000			104,444			50,994			80,475			2,035,913
At 30 September 2013		1,697,500			122,875			50,373			3,046			1,873,794

Revaluations

The Freehold land and buildings class of fixed assets was revalued on 30 September 2014 by Stiles Harold Williams, Consultant Surveyors and Valuers who is external to the company. The basis of this valuation was market value assuming vacant possession. This class of assets has a current value of £1,800,000 (2013 - £1,750,000) and a carrying amount at historical cost of £1,154,280 (2013 - £1,154,280). The depreciation on this historical cost is £nil (2013 - £nil). The last full valuation of Freehold land and buildings was carried out on 30 September 2014.

9	Investments held as fixed assets

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Page 18

Main Systems Limited
Notes to the Financial Statements for the Year Ended 30 September 2014
......... continued

Undertaking	Country of incorporation	Holding	Proportion of voting rights and shares held	Principal activity
Subsidiary undertakings
Main Systems Distributors Ltd		Ordinary	100%	Dormant

10

Stocks

		2014 £			2013 £
Raw materials		232,804			242,055
Work in progress		123,876			64,072
Finished goods		603			566
		357,283			306,693

11

Debtors

		2014 £			2013 £
Trade debtors		464,573			942,838
Amounts recoverable on long term contracts		192,056			225,690
Other debtors		25,061			-
Prepayments and accrued income		108,958			31,151
		790,648			1,199,679

12	Creditors: Amounts falling due within one year

		2014 £			2013 £
Trade creditors		446,130			558,844
Bank loans and overdrafts		88,958			78,277
Corporation tax		-			44,588
Other taxes and social security		76,429			145,859
Other creditors		5,831			111
Directors' current accounts		123,342			65,726
Accruals and deferred income		347,299			287,553
		1,087,989			1,180,958

Page 19

Main Systems Limited
Notes to the Financial Statements for the Year Ended 30 September 2014
......... continued

Creditors amounts falling due within one year includes the following liabilities, on which security has been given by the company:

		2014 £			2013 £
Bank Loans and overdraft		88,958			78,277

The bank loans and overdraft are secured by a fixed charge over the freehold property of the company.

13	Creditors: Amounts falling due after more than one year

		2014 £			2013 £
Bank loans and overdrafts		182,409			-

Creditors amounts falling due after more than one year includes the following liabilities, on which security has been given by the company:

		2014 £			2013 £
Bank loans and overdrafts		182,409			-

The bank loans and overdrafts are secured by a fixed Charge over the freehold property of the company

14	Provisions

		Deferred tax £			Total £
At 1 October 2013		22,365			22,365
Utilised during the year		(20,839)			(20,839)
At 30 September 2014		1,526			1,526

Analysis of deferred tax

		2014 £			2013 £
Difference between accumulated depreciation and amortisation and capital allowances		30,579			22,365
Tax losses available		(29,053)			-
		1,526			22,365

Page 20

Main Systems Limited
Notes to the Financial Statements for the Year Ended 30 September 2014
......... continued

15	Share capital

Allotted, called up and fully paid shares

	2014						2013
		No.			£			No.			£
Ordinary shares of £0.10 each		1,000			100			1,000			100
Redeemable preference shares of £0.10 each		50			5			75			8
		1,050			105			1,075			108

Redeemable preference shares

The Redeemable preference shares are redeemable at the option of the company . They are redeemable at £2,444 per share and carry no voting rights .

16

Reserves

		Share premium account £			Revaluation reserve £			Other reserves £			Profit and loss account £			Total £
At 1 October 2013		427,702			810,870			10			1,046,977			2,285,559
Loss for the year		-			-			-			(302,098)			(302,098)
Purchase of own shares		-			-			-			(61,103)			(61,103)
Surplus on property revaluation		-			115,625			-			-			115,625
Other reserve movements		-			(6,756)			3			6,756			3
At 30 September 2014		427,702			919,739			13			690,532			2,037,986

Page 21

Main Systems Limited
Notes to the Financial Statements for the Year Ended 30 September 2014
......... continued

17	Reconciliation of movement in shareholders' funds

		2014 £			2013 £
(Loss)/profit attributable to the members of the company		(302,098)			270,113
Other recognised gains and losses relating to the year		115,628			7
Purchase of own share capital		(61,106)			(183,315)
Net (reduction)/addition to shareholders' funds		(247,576)			86,805
Shareholders' funds at 1 October		2,285,667			2,198,862
Shareholders' funds at 30 September		2,038,091			2,285,667

18	Pension schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £7,707 (2013 - £5,793).

19	Commitments

Operating lease commitments

As at 30 September 2014 the company had annual commitments under non-cancellable operating leases as follows:

Operating leases which expire:

		2014 £			2013 £
Other
Within two and five years		11,273			11,273

20	Analysis of net debt

	At 1 October 2013 £	Cash flow £	At 30 September 2014 £
Cash at bank and in hand	108,824	17,347	126,171
Debt due within one year	(78,277)	(10,681)	(88,958)
Debt due after more than one year	-	(182,409)	(182,409)

Page 22

Main Systems Limited
Notes to the Financial Statements for the Year Ended 30 September 2014
......... continued

Net debt

30,547

(175,743)

(145,196)

21	Related party transactions

Other related party transactions

During the year the company made the following related party transactions:

Mrs Mainstone (Director) During the year the company purchased 25 redeemable preference shares from Mrs Mainstone for the total cost of £61,103 which was paid in cash. The company bought a car from Mrs Mainstone for £6,750, its market value. Mrs Mainstone loaned the company a further £50,000 in September 2014 on the same terms as the existing loan. The company pays Mrs Mainstone interest on her loan to the company . At the balance sheet date the amount due to Mrs Mainstone was £123,342 (2013 - £65,726).

Page 23