Machina Espresso Ltd - Period Ending 2017-07-31

Machina Espresso Ltd - Period Ending 2017-07-31


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Registration number: SC442979

Machina Espresso Ltd

Annual Report and Unaudited Financial Statements

for the Year Ended 31 July 2017

Sense Accounting & Bookkeeping Limited
Chartered Accountants
56 Marchmont Road
Edinburgh
EH9 1HS

 

Machina Espresso Ltd

Contents

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3 to 7

 

Machina Espresso Ltd

Company Information

Director

SP Glencross

Registered office

Unit 9
Peffermill Park
25 King's Haugh
Edinburgh
EH16 5UY

Accountants

Sense Accounting & Bookkeeping Limited
Chartered Accountants
56 Marchmont Road
Edinburgh
EH9 1HS

 

Machina Espresso Ltd

(Registration number: SC442979)
Balance Sheet as at 31 July 2017

Note

2017
£

2016
£

Fixed assets

 

Tangible assets

4

27,273

28,202

Current assets

 

Stocks

5

59,450

34,011

Debtors

6

51,068

38,994

Cash at bank and in hand

 

16,180

20,508

 

126,698

93,513

Creditors: Amounts falling due within one year

7

(122,671)

(96,009)

Net current assets/(liabilities)

 

4,027

(2,496)

Total assets less current liabilities

 

31,300

25,706

Creditors: Amounts falling due after more than one year

7

(46,301)

(16,666)

Provisions for liabilities

(5,333)

(5,641)

Net (liabilities)/assets

 

(20,334)

3,399

Capital and reserves

 

Called up share capital

10

10

Profit and loss account

(20,344)

3,389

Total equity

 

(20,334)

3,399

For the financial year ending 31 July 2017 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 accounts for the year in question in accordance with section 476; and

The director acknowledges his 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 director on 22 May 2018
 

.........................................

SP Glencross

Director

 

Machina Espresso Ltd

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

1

General information

The company is a private company limited by share capital, incorporated in Scotland.

The address of its registered office is:
Unit 9
Peffermill Park
25 King's Haugh
Edinburgh
EH16 5UY
United Kingdom

These financial statements were authorised for issue by the director on 22 May 2018.

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.

The company has elected to adopt FRS 102, Section 1A with the effective date of transition being 1 August 2015.

Information on the impact of the first-time adoption of FRS 102 is given in note 10.

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.

Going concern

At the year end the company was in a net liabilities position. The director has indicated that he intends to provide such funds as are necessary for the company to trade for the foreseeable future. On this basis the financial statements have been prepared on a going concern basis which assumes that the company will continue to trade.

Revenue recognition

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

Turnover from the sale of goods is recognised when the risks and rewards of ownership have been transferred to the buyer. Revenue is stated after sales discounts and other sales taxes, and is net of VAT.

Tax

The tax expense for the period comprises current tax. Tax is recognised in the profit and loss account except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income.

 

Machina Espresso Ltd

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

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. The following timing differences are not provided for: differences between accumulated depreciation and tax allowances for the cost of a fixed asset if and when all conditions for retaining the tax allowances have been met; and differences relating to investments in subsidiaries, to the extent that it is not probable that they will reverse in the foreseeable future and the reporting entity is able to control the reversal of the timing difference.

Deferred tax is not recognised on permanent differences arising because certain types of income or expense are non-taxable or are disallowable for tax or because certain tax charges or allowances are greater or smaller than the corresponding income or expense.

Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or substantively enacted at the balance sheet date. Deferred tax balances are not discounted. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that is it probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Tangible assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

Depreciation

Depreciation is charged to the profit and loss account on the following rates over the estimated useful lives of each part of an item of tangible fixed assets. Leased assets are depreciated over the shorter of the lease term and their useful lives.

Asset class

Depreciation method and rate

Plant and machinery

20% straight line

Office equipment

20% straight line

Fixtures and fittings

20% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part of the Company’s cash management are included as a component of cash and cash equivalents for the purpose only of the cash flow statement.

Trade debtors

Trade and other debtors are recognised initially at transaction price less attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. 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.

 

Machina Espresso Ltd

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

Trade creditors

Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method.

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 10 (2016 - 5).

4

Tangible assets

Furniture, fittings and equipment
 £

Other property, plant and equipment
 £

Total
£

Cost or valuation

At 1 August 2016

18,561

20,160

38,721

Additions

7,849

400

8,249

Disposals

(55)

-

(55)

At 31 July 2017

26,355

20,560

46,915

Depreciation

At 1 August 2016

3,194

7,324

10,518

Charge for the year

5,127

4,052

9,179

Eliminated on disposal

(55)

-

(55)

At 31 July 2017

8,266

11,376

19,642

Carrying amount

At 31 July 2017

18,089

9,184

27,273

At 31 July 2016

15,366

12,836

28,202

5

Stocks

2017
£

2016
£

Other inventories

59,450

34,011

6

Debtors

2017
£

2016
£

Trade debtors

14,504

29,296

Other debtors

36,564

9,698

51,068

38,994

 

Machina Espresso Ltd

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

7

Creditors

Creditors: amounts falling due within one year

Note

2017
£

2016
£

Due within one year

 

Bank loans and overdrafts

9,493

8,464

Trade creditors

 

32,410

12,611

Taxation and social security

 

1,750

5,919

Other creditors

 

79,018

69,015

 

122,671

96,009

Creditors: amounts falling due after more than one year

Note

2017
£

2016
£

Due after one year

 

Loans and borrowings

46,301

16,666

8

Share capital

Allotted, called up and fully paid shares

 

2017

2016

 

No.

£

No.

£

Ordinary Shares of £0 (2016 - £1) each

-

-

10

10

A Shares of £1 (2016 - £0) each

8

8

-

-

B Shares of £1 (2016 - £0) each

2

2

-

-

 

10

10

10

10

9

Related party transactions

Directors' remuneration

The director's remuneration for the year was as follows:

2017
£

2016
£

Remuneration

33,311

33,731

 

Machina Espresso Ltd

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

Other transactions with directors

As at 31 July 2017, the company owed the director, SP Glencross, is £41,712 (2016: £41,712).

10

Transition to FRS 102

This is the first financial year that the company has presented its financial statements in accordance with FRS 102 ‘The Financial Reporting Framework applicable in the UK and Republic of Ireland’ (“FRS 102”). For financial years up to and including the year ending 31 July 2016, the company prepared its financial statements in accordance with previously extant UK GAAP.

The date of transition to FRS 102 is therefore 1 August 2015. In carrying out the transition to FRS 102, the company has not applied any of the optional exemptions permitted by Section 35 Transition to this FRS.

There have been no changes to accounting policies or accounting treatments required to be made upon transition to FRS 102. Accordingly, the company’s opening equity position as at the 1 August 2015 and its financial position and performance for the year ended 31 July 2016 are unchanged from that previously presented under previously extant UK GAAP.