Wintech Engineering Limited - Period Ending 2017-03-31

Registration number: 02810526

Wintech Engineering Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 March 2017

mca business ltd
Suite 16D
The Mclaren Building
46 The Priory Queensway
Birmingham
B4 7LR

Wintech Engineering Limited

Contents

Company Information	1
Directors' Report	2
Accountants' Report	3
Balance Sheet	4 to 5
Statement of Changes in Equity	6
Notes to the Financial Statements	7 to 15

Wintech Engineering Limited

Company Information

Directors

Mr J A Macey Mr G O Nepp Mr S J Macey Mr M Cox Mr S R Bramhill Mr M D Wass

Company secretary

Mrs A Gretton

Registration number

02810526

Registered office

Halesfield 2 Telford Shropshire TF7 4QH

Accountants

mca business ltd Suite 16D The Mclaren Building 46 The Priory Queensway Birmingham B4 7LR

Page 1

Wintech Engineering Limited

Directors' Report for the Year Ended 31 March 2017

The directors present their report and the financial statements for the year ended 31 March 2017.

Directors of the company

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

Mr J A Macey

Mr G O Nepp

Mr S J Macey

Mr M Cox

Mr S R Bramhill

Mr M D Wass

Ms S Wildgoose (Resigned 9 September 2016)

Principal activity

The principal activity of the company is testing and accreditation for the construction industry.

Small companies provision statement

This report has 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.

Approved by the Board on 15 September 2017 and signed on its behalf by:

Mrs A Gretton
Company secretary

Page 2

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Wintech Engineering Limited
for the Year Ended 31 March 2017

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Wintech Engineering Limited for the year ended 31 March 2017 as set out on pages 4 to 15 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 Wintech Engineering Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of Wintech Engineering Limited and state those matters that we have agreed to state to the Board of Directors of Wintech Engineering 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 Wintech Engineering Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Wintech Engineering Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Wintech Engineering Limited. You consider that Wintech 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 accounts of Wintech 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 accounts.

mca business ltd
Suite 16D
The Mclaren Building
46 The Priory Queensway
Birmingham
B4 7LR

15 September 2017

Page 3

Wintech Engineering Limited

(Registration number: 02810526)
Balance Sheet as at 31 March 2017

	Note	2017 £	2016 £
Fixed assets
Tangible assets	5	494,345	430,757
Current assets
Stocks	6	4,373	4,383
Debtors	7	444,970	339,887
Cash at bank and in hand		360,558	429,241
		809,901	773,511
Creditors: Amounts falling due within one year	8	(311,375)	(234,968)
Net current assets		498,526	538,543
Total assets less current liabilities		992,871	969,300
Creditors: Amounts falling due after more than one year	8	(35,170)	(30,492)
Provisions for liabilities		(59,000)	(44,000)
Net assets		898,701	894,808
Capital and reserves
Called up share capital		200	206
Capital redemption reserve		29	23
Profit and loss account		898,472	894,579
Total equity		898,701	894,808

For the financial year ending 31 March 2017 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 15 September 2017 and signed on its behalf by:
 

Mr G O Nepp

Director

The notes on pages 7 to 15 form an integral part of these financial statements.

Page 4

Wintech Engineering Limited

(Registration number: 02810526)
Balance Sheet as at 31 March 2017

Mr M Cox

Director

The notes on pages 7 to 15 form an integral part of these financial statements.

Page 5

Wintech Engineering Limited

Statement of Changes in Equity for the Year Ended 31 March 2017

	Share capital £	Capital redemption reserve £	Profit and loss account £	Total £
At 1 April 2016	206	23	894,579	894,808
Profit for the year	-	-	452,626	452,626
Total comprehensive income	-	-	452,626	452,626
Dividends	-	-	(300,000)	(300,000)
Purchase of own share capital	(6)	-	(148,733)	(148,739)
Other capital redemption reserve movements	-	6	-	6
At 31 March 2017	200	29	898,472	898,701

	Share capital £	Capital redemption reserve £	Profit and loss account £	Total £
At 1 April 2015	206	23	674,821	675,050
Profit for the year	-	-	489,758	489,758
Total comprehensive income	-	-	489,758	489,758
Dividends	-	-	(270,000)	(270,000)
At 31 March 2016	206	23	894,579	894,808

The notes on pages 7 to 15 form an integral part of these financial statements.

Page 6

Wintech Engineering Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

1	General information

The company is a private company limited by share capital incorporated in United Kingdom.

The address of its registered office is:
Halesfield 2
Telford
Shropshire
TF7 4QH
England

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 that as disclosed in the accounting policies certain items are shown at fair value.

These financial statements are prepared in Sterling, which is the functional currency of the company. All monetary amounts are rounded to the nearest £.

Going concern

The financial statements have been prepared on a going concern basis.

Judgements and estimates

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Page 7

Wintech Engineering Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Land and buildings	10% straight line
Plant and machinery	25% reducing balance
Fixtures and fittings	25% reducing balance
Motor vehicles	25% reducing balance
Office equipment	33.3% straight line

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 debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

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 subsequently measured at amortised cost using the effective interest method.

Page 8

Wintech Engineering Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

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.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Page 9

Wintech Engineering Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

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.
Financial instruments are recognised in the company’s statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets are classified into specified categories. The classification depends on the nature and purpose of the financial assets and is determined at the time of recognition.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic Financial Assets
Basic financial assets which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs 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.

Other Financial Assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
 

Classification of Financial Liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including trade and other payables, 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 receipts discounted at a market rate of interest.

Debt Instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables 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 payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Page 10

Wintech Engineering Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

Impairment of Financial Assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of Financial Assets
Financial asserts are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
 

Other Financial Liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Derecognition of Financial Liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
 

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 39 (2016 - 38).

4

Taxation

Taxation charge comprises;

	2017 £	2016 £
Corporation tax charge	81,340	108,432
R&D tax credits	(80,351)	-
Origination and reversal of timing differences	15,000	14,700
Total Taxation	15,989	123,132

Page 11

Wintech Engineering Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

5	Tangible assets

	Land and buildings £	Furniture, fittings and equipment  £	Motor vehicles  £	Other property, plant and equipment  £
Cost or valuation
At 1 April 2016	427,793	126,499	72,100	852,672
Additions	69,785	17,785	28,898	60,626
Disposals	-	-	(26,679)	-
At 31 March 2017	497,578	144,284	74,319	913,298
Depreciation
At 1 April 2016	261,244	102,800	35,323	648,939
Charge for the year	22,198	9,665	13,629	60,650
Eliminated on disposal	-	-	(19,314)	-
At 31 March 2017	283,442	112,465	29,638	709,589
Carrying amount
At 31 March 2017	214,136	31,819	44,681	203,709
At 31 March 2016	166,547	23,699	36,777	203,734

	Total £
Cost or valuation
At 1 April 2016	1,479,064
Additions	177,094
Disposals	(26,679)
At 31 March 2017	1,629,479
Depreciation
At 1 April 2016	1,048,306
Charge for the year	106,142
Eliminated on disposal	(19,314)
At 31 March 2017	1,135,134
Carrying amount
At 31 March 2017	494,345
At 31 March 2016	430,757

Page 12

Wintech Engineering Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

Included within the net book value of land and buildings above is £214,136 (2016 - £166,548) in respect of freehold land and buildings.
 

6

Stocks

	2017 £	2016 £
Other inventories	4,373	4,383

7

Debtors

	Note	2017 £	2016 £
Trade debtors		408,814	307,154
Amounts owed by group undertakings and undertakings in which the company has a participating interest	12	-	2,124
Other debtors		36,156	30,609
Total current trade and other debtors		444,970	339,887

8

Creditors

	Note	2017 £	2016 £
Due within one year
Hire purchase and finance leases	9	21,528	12,563
Trade creditors		35,740	63,861
Amounts owed to group undertakings and undertakings in which the company has a participating interest	12	69,985	-
Taxation and social security		82,229	65,110
Other creditors		101,893	93,434
		311,375	234,968
Due after one year
Hire purchase and finance leases	9	35,170	30,492

9	Loans and borrowings

	2017 £	2016 £
Non-current loans and borrowings
Finance lease liabilities	35,170	30,492

Page 13

Wintech Engineering Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

	2017 £	2016 £
Current loans and borrowings
Finance lease liabilities	21,528	12,563

10

Dividends

Interim dividends paid

	2017 £	2016 £
Interim dividend of £1.55 (2016 - £0) per each £0.001 Ordinary share	255,154	-
Interim dividend of £1.55 (2016 - £0) per each £0.001 Ordinary B share	44,846	-
Interim dividend of £0 (2016 - £1,310.68) per each £1 Ordinary share	-	216,262
Interim dividend of £0 (2016 - £1,310.68) per each £1 Ordinary B share	-	53,738
	300,000	270,000

11	Share capital

Allotted, called up and fully paid shares

	2017		2016
	No.	£	No.	£
£0.001 Ordinary of £0.001 each	165,000	165	-	-
£0.001 Ordinary B of £0.001 each	29,000	29	-	-
£1 Ordinary of £1.000 each	-	-	177	177
£1 Ordinary B of £1.000 each	-	-	29	29
£1 Ordinary D of £1.000 each	6	6	-	-
	194,006	200	206	206

6 ordinary £1 shares have been cancelled. The remainder have been converted to 6 ordinary D shares of £1 each and 165,000 ordinary shares of £0.001 each.
The £1 ordinary B shares have been converted to 29,000 ordinary B shares of £0.001 each.

12	Related party transactions

Summary of transactions with other related parties

Page 14

Wintech Engineering Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

Rent of £31,250 (2016 - £37,500) paid to CJ & JA Macey Partnership, a business in which JA Macey is a partner.

The company has taken advantage of exemption of section 33 of FRS 102 “Related Party Disclosures” not to disclose any transactions with any wholly owned entities within the same group.

13	Parent and ultimate parent undertaking

The company's immediate parent is Dokimi Group Limited, incorporated in England.

 

14	Transition to FRS 102

This is the first year that the company has presented its financial statements under Financial Reporting Standard 102 (FRS 102), the financial reporting standard applicable in the UK and Republic of Ireland.

The date of transition was 1 April 2015, and there were minimal changes required to the company’s accounting policies.

There is no difference between the financial position or financial performance as a result of the transition.

Page 15