LGM_ENGINEERING_LIMITED - Accounts


Company Registration No. 09039399 (England and Wales)
LGM ENGINEERING LIMITED
DIRECTOR'S REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
LGM ENGINEERING LIMITED
COMPANY INFORMATION
Director
Mr L  McAulay
Company number
09039399
Registered office
Kings Parade
Lower Coombe Street
Croydon
Surrey
CR0 1AA
Accountants
Bryden Johnson
Kings Parade
Lower Coombe Street
Croydon
CR0 1AA
LGM ENGINEERING LIMITED
CONTENTS
Page
Director's report
1
Accountants' report
2
Profit and loss account
3
Balance sheet
4 - 5
Notes to the financial statements
6 - 9
LGM ENGINEERING LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2016
- 1 -
The director presents his report and financial statements for the year ended 30 June 2016.
Principal activities

The principal activity of the company continued to be that of precision fabrication engineering and sheet metal manufacturing.continued to be that of precision fabrication engineering and sheet metal manufacturing.

Director
The following director has held office since 1 July 2015:
Mr L  McAulay
This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.
On behalf of the board
Mr L McAulay
Director
27 January 2017
LGM ENGINEERING LIMITED
CHARTERED ACCOUNTANTS' REPORT TO THE DIRECTOR ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF LGM ENGINEERING LIMITED FOR THE YEAR ENDED 30 JUNE 2016
- 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 LGM Engineering Limited for the year ended 30 June 2016 set out on pages 3 to 9 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, 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 LGM Engineering Limited, as a body, in accordance with the terms of our engagement letter dated 14 July 2014. Our work has been undertaken solely to prepare for your approval the financial statements of LGM Engineering Limited and state those matters that we have agreed to state to the Board of Directors of LGM Engineering Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF as detailed at icaew.com. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than LGM Engineering Limited and its Board of Directors as a body, for our work or for this report.

It is your duty to ensure that LGM Engineering 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 LGM Engineering Limited. You consider that LGM Engineering 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 LGM Engineering 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
10 March 2017
Chartered Accountants
Kings Parade
Lower Coombe Street
Croydon
CR0 1AA
LGM ENGINEERING LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2016
- 3 -
2016
2015
Notes
£
£
Turnover
337,407
244,593
Cost of sales
(193,181)
(135,303)
Gross profit
144,226
109,290
Administrative expenses
(65,132)
(67,353)
Operating profit
2
79,094
41,937
Interest payable and similar charges
(11,297)
(6,260)
Profit on ordinary activities before taxation
67,797
35,677
Tax on profit on ordinary activities
3
(17,783)
-
Profit for the year
11
50,014
35,677
LGM ENGINEERING LIMITED
BALANCE SHEET
AS AT
30 JUNE 2016
30 June 2016
- 4 -
2016
2015
Notes
£
£
£
£
Fixed assets
Intangible assets
5
32,000
36,000
Tangible assets
6
73,566
110,349
105,566
146,349
Current assets
Debtors
7
32,933
42,537
Cash at bank and in hand
29,455
8,630
62,388
51,167
Creditors: amounts falling due within one year
8
(123,123)
(120,501)
Net current liabilities
(60,735)
(69,334)
Total assets less current liabilities
44,831
77,015
Creditors: amounts falling due after more than one year
9
(20,826)
(41,238)
24,005
35,777
Capital and reserves
Called up share capital
10
100
100
Profit and loss account
11
23,905
35,677
Shareholders'  funds
24,005
35,777
LGM ENGINEERING LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 JUNE 2016
30 June 2016
- 5 -
For the financial year ended 30 June 2016 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Director's responsibilities:
-
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;
-
The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and the Financial Reporting Standard for Smaller Entities (effective January 2015).
Approved by the Board for issue on 27 January 2017
Mr L  McAulay
Director
Company Registration No. 09039399
LGM ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
- 6 -
1
Accounting policies
1.1
Accounting convention

The financial statements are prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015).

1.2
Compliance with accounting standards
The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied consistently (except as otherwise stated).
1.3
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.
1.4
Goodwill
Acquired goodwill is written off in equal annual instalments over its estimated useful economic life.
1.5
Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Plant and machinery
25% Straight line
Motor vehicles
25% Straight line
2
Operating profit
2016
2015
£
£
Operating profit is stated after charging:
Depreciation of tangible assets
36,783
36,783
Director's remuneration
12,000
12,000
3
Taxation
2016
2015
£
£
Domestic current year tax
U.K. corporation tax
17,783
-
Total current tax
17,783
-
The company has estimated losses of £ nil (2015 - £ 15,665) available for carry forward against future trading profits.
4
Dividends
2016
2015
£
£
Ordinary interim paid
61,786
-
LGM ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2016
- 7 -
5
Intangible fixed assets
Goodwill
£
Cost
At 1 July 2015 & at 30 June 2016
40,000
Amortisation
At 1 July 2015
4,000
Charge for the year
4,000
At 30 June 2016
8,000
Net book value
At 30 June 2016
32,000
At 30 June 2015
36,000
6
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 July 2015 & at 30 June 2016
147,132
Depreciation
At 1 July 2015
36,783
Charge for the year
36,783
At 30 June 2016
73,566
Net book value
At 30 June 2016
73,566
At 30 June 2015
110,349
The net book value of tangible fixed assets includes £69,354 (2015 - £104,032) in respect of assets held under finance leases or hire purchase contracts. The depreciation charge in respect of such assets amounted to £34,677 (2015 - £34,677) for the year.
LGM ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2016
- 8 -
7
Debtors
2016
2015
£
£
Trade debtors
1,424
42,537
Other debtors
31,509
-
32,933
42,537
8
Creditors: amounts falling due within one year
2016
2015
£
£
Bank loans and overdrafts
2,000
2,000
Net obligations under hire purchase contracts
26,198
29,529
Trade creditors
68,180
36,755
Taxation and social security
18,692
8,150
Other creditors
8,053
44,067
123,123
120,501
9
Creditors: amounts falling due after more than one year
2016
2015
£
£
Bank loans
5,485
8,000
Net obligations under hire purchase contracts
15,341
33,238
20,826
41,238
Analysis of loans
Wholly repayable within five years
7,485
10,000
Included in current liabilities
(2,000)
(2,000)
5,485
8,000
10
Share capital
2016
2015
£
£
Allotted, called up and fully paid
80Ordinary shares of £1 each
80
80
20Ordinary-A shares of £1 each
20
20
100
100
LGM ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2016
- 9 -
11
Statement of movements on profit and loss account
Profit
and loss
account
£
Balance at 1 July 2015
35,677
Profit for the year
50,014
Dividends paid
(61,786)
Balance at 30 June 2016
23,905
12
Financial commitments
At 30 June 2016 the company was committed to making the following payments under non-cancellable operating leases in the year to 30 June 2017:
2016
2015
£
£
Operating leases which expire:
Between two and five years
3,131
-
13
Control

The company is under the control of it's director on account of his majority shareholding.

14
Related party relationships and transactions
The following directors were paid dividends during the year as outlined in the table below:
2016
2015
£
£
Mr L  McAulay
27,000
-
27,000
-

Included in other creditors is a balance of £53 (2015: £43,067) due to L McAulay the director of the company.

 

 

 

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