LGM_ENGINEERING_LIMITED

LGM ENGINEERING LIMITED

DIRECTOR'S REPORT

FOR THE YEAR ENDED 30 JUNE 2016

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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.

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

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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

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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

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

(17,783)

Profit for the year

50,014

35,677

LGM ENGINEERING LIMITED

BALANCE SHEET

AS AT

30 JUNE 2016

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2016

2015

Notes

Fixed assets

Intangible assets

32,000

36,000

Tangible assets

73,566

110,349

105,566

146,349

Current assets

Debtors

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

(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

(20,826)

(41,238)

24,005

35,777

Capital and reserves

Called up share capital

100

Profit and loss account

23,905

35,677

Shareholders' funds

24,005

35,777

LGM ENGINEERING LIMITED

BALANCE SHEET (CONTINUED)

AS AT

30 JUNE 2016

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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

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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

Operating profit

2016

2015

Operating profit is stated after charging:

Depreciation of tangible assets

36,783

Director's remuneration

12,000

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.

Dividends

2016

2015

Ordinary interim paid

61,786

LGM ENGINEERING LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2016

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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

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

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Debtors

2016

2015

Trade debtors

1,424

42,537

Other debtors

31,509

32,933

42,537

Creditors: amounts falling due within one year

2016

2015

Bank loans and overdrafts

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

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)

5,485

8,000

Share capital

2016

2015

Allotted, called up and fully paid

80 Ordinary shares of £1 each

20 Ordinary-A shares of £1 each

100

LGM ENGINEERING LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2016

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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

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

Control

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

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

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