Systems Mechanics Limited - Period Ending 2018-09-30
Systems Mechanics Limited - Period Ending 2018-09-30
Registration number:
Systems Mechanics Limited
for the Year Ended 30 September 2018
(filleted for filing purposes)
Systems Mechanics Limited
Contents
Company Information |
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Balance Sheet |
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Statement of Changes in Equity |
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Notes to the Financial Statements |
Systems Mechanics Limited
Company Information
Directors |
RJ Green PN Godfrey CJ Mathews |
Company secretary |
RJ Green |
Registered office |
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Page 1 |
Systems Mechanics Limited
(Registration number: 03030744)
Balance Sheet as at 30 September 2018
Note |
2018 |
2017 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Investments |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current liabilities |
( |
( |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Share premium reserve |
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Capital redemption reserve |
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Profit and loss account |
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Total equity |
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Page 2 |
Systems Mechanics Limited
(Registration number: 03030744)
Balance Sheet as at 30 September 2018
For the financial year ending 30 September 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
• |
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• |
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
.........................................
RJ Green
Director
.........................................
PN Godfrey
Director
.........................................
CJ Mathews
Director
Page 3 |
Systems Mechanics Limited
Statement of Changes in Equity for the Year Ended 30 September 2018
Share capital |
Share premium |
Capital redemption reserve |
Profit and loss account |
Total |
|
At 1 October 2017 |
938 |
71,910 |
234 |
1,011,243 |
1,084,325 |
Loss for the year |
- |
- |
- |
( |
( |
At 30 September 2018 |
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Share capital |
Share premium |
Capital redemption reserve |
Profit and loss account |
Total |
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At 1 October 2017 |
938 |
71,910 |
234 |
642,452 |
715,534 |
Profit for the year |
- |
- |
- |
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At 30 September 2017 |
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Page 4 |
Systems Mechanics Limited
Notes to the Financial Statements for the Year Ended 30 September 2018
General information |
The company is a private company limited by share capital, incorporated in England.
The address of its registered office is:
England
The principal place of business is:
Estuary View House
16 Estuary View Business Park
Whitstable
Kent
CT5 3SE
England
These financial statements were authorised for issue by the
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.
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.
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.
Page 5 |
Systems Mechanics Limited
Notes to the Financial Statements for the Year Ended 30 September 2018
Tax
The tax expense for the period comprises current and deferred tax.
The current income 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.
The tax expense for the period includes a claim for Research and Development tax credit.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
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.
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 |
Office equipment |
33% on written down value |
Fixtures and fittings |
15% on written down value |
Short leasehold land and building |
Over the period of the lease |
Freehold land and buildings |
Over 50 years |
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Intangible assets
Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.
Research and development
Development expenditure incurred on an individual project is carried forward when its future recoverability can reasonably be regarded as assured. Any expenditure carried forward is amortised in line with the expected future sales from the related project.
Page 6 |
Systems Mechanics Limited
Notes to the Financial Statements for the Year Ended 30 September 2018
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Research and development on internally developed computer software |
Up to 10 years |
Patents |
Up to 10 years |
Trademarks |
Up to 10 years |
Goodwill |
Up to 10 years |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
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 7 |
Systems Mechanics Limited
Notes to the Financial Statements for the Year Ended 30 September 2018
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.
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.
Share based payment
The company has issued share options to certain employees. These financial statements have been prepared in accordance with the Financial Reporting Standard 102 Section 1A for Smaller Entities which does not require equity-settled share based payment arrangements to be recognised as an expense.
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.
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Page 8 |
Systems Mechanics Limited
Notes to the Financial Statements for the Year Ended 30 September 2018
Intangible assets |
Goodwill |
Trademarks, patents and licenses |
Internally generated software development costs |
Total |
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Cost or valuation |
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At 1 October 2017 |
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Additions internally developed |
- |
- |
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At 30 September 2018 |
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Amortisation |
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At 1 October 2017 |
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Amortisation charge |
- |
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At 30 September 2018 |
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Carrying amount |
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At 30 September 2018 |
- |
- |
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At 30 September 2017 |
- |
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The aggregate amount of research and development expenditure recognised as an expense during the period is £Nil (2017 - £Nil).
Page 9 |
Systems Mechanics Limited
Notes to the Financial Statements for the Year Ended 30 September 2018
Tangible assets |
Land and buildings |
Short leasehold land and buildings |
Fixtures and fittings |
Office equipment |
Total |
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Cost or valuation |
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At 1 October 2017 |
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Additions |
- |
- |
- |
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Disposals |
- |
- |
- |
( |
( |
At 30 September 2018 |
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Depreciation |
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At 1 October 2017 |
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Charge for the year |
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Eliminated on disposal |
- |
- |
- |
( |
( |
At 30 September 2018 |
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Carrying amount |
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At 30 September 2018 |
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At 30 September 2017 |
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Included within the net book value of land and buildings above is £334,976 (2017 - £342,259) in respect of freehold land and buildings and £5,703 (2017 - £6,633) in respect of short leasehold land and buildings.
Page 10 |
Systems Mechanics Limited
Notes to the Financial Statements for the Year Ended 30 September 2018
Investments |
2018 |
2017 |
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Investments in subsidiaries |
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Subsidiaries |
£ |
Cost or valuation |
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At 1 October 2017 |
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Provision |
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Carrying amount |
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At 30 September 2018 |
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At 30 September 2017 |
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Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
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2018 |
2017 |
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Subsidiary undertakings |
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The New Barn, Mill Lane Eastry, Sandwich, Kent, CT13 OJW |
Ordinary |
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England |
Sysmech Limited is |
Stocks |
2018 |
2017 |
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Work in progress |
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Other inventories |
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Page 11 |
Systems Mechanics Limited
Notes to the Financial Statements for the Year Ended 30 September 2018
Debtors |
2018 |
2017 |
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Trade debtors |
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Other debtors |
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Total current trade and other debtors |
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Creditors |
Creditors: amounts falling due within one year
Note |
2018 |
2017 |
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Due within one year |
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Current loans and borrowings |
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Trade creditors |
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Taxation and social security |
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Other creditors |
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Due after one year |
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Loans and borrowings |
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Creditors include factoring agents, bank mortgage and net obligations under finance lease and hire purchase contracts which are secured of £611,934 (2016 - £564,969).
Creditors: amounts falling due after more than one year
Note |
2018 |
2017 |
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Due after one year |
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Loans and borrowings |
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2018 |
2017 |
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Due after more than five years |
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After more than five years by instalments |
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- |
- |
Creditors include factoring agents, bank mortgage and net obligations under finance lease and hire purchase contracts which are secured of £326,700 (2016 - £313,419).
Page 12 |
Systems Mechanics Limited
Notes to the Financial Statements for the Year Ended 30 September 2018
Share capital |
Allotted, called up and fully paid shares
2018 |
2017 |
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No. |
£ |
No. |
£ |
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934.00 |
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934.00 |
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1 |
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1 |
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1 |
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1 |
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1 |
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1 |
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1 |
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1 |
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Loans and borrowings |
2018 |
2017 |
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Current loans and borrowings |
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Bank borrowings |
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Finance lease liabilities |
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Other borrowings |
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2018 |
2017 |
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Non-current loans and borrowings |
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Bank borrowings |
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Finance lease liabilities |
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Other borrowings |
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Included in the loans and borrowings are the following amounts due after more than five years:
Bank mortgage £123,317 (2017 £142,997).
Financial commitments, guarantees and contingencies |
Amounts not provided for in the balance sheet
The total amount of financial commitments not included in the balance sheet is £
Page 13 |
Systems Mechanics Limited
Notes to the Financial Statements for the Year Ended 30 September 2018
Related party transactions |
Transactions with directors |
2018 |
At 1 October 2017 |
Advances to directors |
Repayments by director |
At 30 September 2018 |
CJ Mathews |
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Overdrawn directors loan account |
(6,235) |
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( |
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2017 |
At 1 October 2016 |
Advances to directors |
Repayments by director |
At 30 September 2017 |
CJ Mathews |
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Overdrawn directors loan account |
(35,701) |
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( |
( |
Summary of transactions with associates
The company's directors are also trustees of the scheme.
The company rents property from Systems Mechanics SSAS and during the year the company was charged rent of £35,000 (2017 - £35,000). At the balance sheet date Systems Mechanics Limited owed Systems Mechanics SSAS four quarters rent of £35,000 (2017 £17,500).
Page 14 |