Nicholson McLaren Engineering Limited - Period Ending 2021-09-30

Nicholson McLaren Engineering Limited

(Registration number: 05922792)
Balance Sheet as at 30 September 2021

	Note	2021  £	2020  £
Current assets
Debtors	4	733,263	419,135
Cash at bank and in hand		-	2,636
		733,263	421,771
Creditors: Amounts falling due within one year	5	(732,263)	(410,548)
Net assets		1,000	11,223
Capital and reserves
Called up share capital		1,000	1,000
Profit and loss account		-	10,223
Total equity		1,000	11,223

For the financial year ending 30 September 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 20 June 2022 and signed on its behalf by:
 

J I Waghorn
Director

Nicholson McLaren Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 September 2021

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Judgements and key sources of estimation uncertainty

No significant judgements or key sources of estimation uncertainty have been made by management in preparing these financial statements.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Nicholson McLaren Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 September 2021

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Financial instruments

Classification
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 on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 3 (2020 - 3).

Nicholson McLaren Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 September 2021

4

Debtors

	Note	2021  £	2020  £
Trade debtors		-	37,277
Other debtors		729,899	380,858
Called up share capital not paid		1,000	1,000
Corporation tax asset		2,364	-
		733,263	419,135

5

Creditors

	2021  £	2020  £
Due within one year
Trade creditors	-	697
Other creditors	727,921	399,598
Accrued expenses	4,342	7,889
Corporation tax liability	-	2,364
	732,263	410,548

6

Related party transactions

Summary of transactions with other related parties

At 30 September 2021, the company was owed £397,017 (2020: the company owed £399,598) to Nicholson McLaren Engines Limited, for loans and expenses incurred on the company's behalf. No interest was charged and this is repayable on demand.

During the year, Nicholson McLaren Engineering Limited incurred costs totalling £26,220 (2020: £250,534) from Nicholson McLaren Engines Limited for work carried out during the year.

At 30 September 2021, the company was owed £330,338 (2020: £361,600) from Nicholson McLaren Aviation Limited, for loans and expenses incurred on the company's behalf. No interest was charged and this is repayable on demand.

During the year to 30 September 2021, invoices totalling £27,600 (2020: £250,534) were raised to Endean Enterprises Limited, for work carried out in the year.

At 30 September 2021, the company owed £727,921 (2020: £nil) to M B Endean, for loans and expenses incurred on the company's behalf. No interest was charged and this is repayable on demand.


All companies are controlled by M B Endean.