COMPANY REGISTRATION NO. 07182440 (England and Wales)
K M PLANT HIRE & GROUNDWORKS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2021
PAGES FOR FILING WITH REGISTRAR
K M PLANT HIRE & GROUNDWORKS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
K M PLANT HIRE & GROUNDWORKS LIMITED
BALANCE SHEET
AS AT
5 APRIL 2021
05 April 2021
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
3
347,351
400,588
Current assets
Stocks
613,229
538,571
Debtors
4
306,999
299,452
Cash at bank and in hand
122,869
121,979
1,043,097
960,002
Creditors: amounts falling due within one year
5
(692,694)
(768,731)
Net current assets
350,403
191,271
Total assets less current liabilities
697,754
591,859
Creditors: amounts falling due after more than one year
6
(105,474)
(116,938)
Provisions for liabilities
(65,997)
-
Net assets
526,283
474,921
Capital and reserves
Called up share capital
7
2
2
Profit and loss reserves
526,281
474,919
Total equity
526,283
474,921
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 5 April 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 22 December 2021
Mr K L Lynch
Director
Company Registration No. 07182440
K M PLANT HIRE & GROUNDWORKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2021
- 2 -
1
Accounting policies
Company information
K M Plant Hire & Groundworks Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Merlin House, Langstone Business Park, Priory Drive, Langstone, Newport, NP18 2HJ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that
it is probable will be
recover
ed
.
1.3
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated
.
1.4
Tangible fixed assets
Tangible fixed assets
are measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
15% reducing balance
Computers
15% reducing balance
Motor vehicles
15% reducing balance
K M PLANT HIRE & GROUNDWORKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2021
1
Accounting policies
(Continued)
- 3 -
1.5
Stocks
L
ong-term contract balances classified under the balance sheet heading of “Stocks” are stated at total costs incurred, net of amounts transferred to the profit and loss account in respect of work carried out to date, less foreseeable losses and applicable payments on account.
Work in progress represents costs incurred on contracts prior to being invoices to the customer.
1.6
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 balance sheet when the company becomes party to the contractual provisions of the instrument.
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.
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.8
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
K M PLANT HIRE & GROUNDWORKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2021
1
Accounting policies
(Continued)
- 4 -
1.10
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.11
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
18
21
3
Tangible fixed assets
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 6 April 2020
584,627
14,732
292,707
892,066
Additions
52,018
6,964
58,982
Disposals
(129,950)
(129,950)
At 5 April 2021
506,695
21,696
292,707
821,098
Depreciation and impairment
At 6 April 2020
291,735
5,454
194,289
491,478
Depreciation charged in the year
41,425
3,452
19,684
64,561
Eliminated in respect of disposals
(82,292)
(82,292)
At 5 April 2021
250,868
8,906
213,973
473,747
Carrying amount
At 5 April 2021
255,827
12,790
78,734
347,351
At 5 April 2020
292,892
9,278
98,418
400,588
K M PLANT HIRE & GROUNDWORKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2021
- 5 -
4
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
167,166
299,452
Corporation tax recoverable
139,483
Other debtors
350
306,999
299,452
5
Creditors: amounts falling due within one year
2021
2020
£
£
Bank loans
8,333
Trade creditors
103,245
150,920
Taxation and social security
241,202
326,059
Other creditors
339,914
291,752
692,694
768,731
6
Creditors: amounts falling due after more than one year
2021
2020
£
£
Bank loans and overdrafts
41,667
Other creditors
63,807
116,938
105,474
116,938
Creditors which fall due after five years are as follows:
2021
2020
£
£
Payable by instalments
1,667
-
7
Called up share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
2
2
2
2
K M PLANT HIRE & GROUNDWORKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2021
- 6 -
8
Directors' transactions
Dividends totalling £77,615 (2020 - £9,300) were paid in the year in respect of shares held by the company's director.
The director operates a current loan account with the company, which is debited with payments made by the company on behalf of the director and credited with funds introduced and undrawn director's fees. At the year end the amount outstanding to the director was £121,051 (2020 - £81,621). This amount being included in creditors: amounts falling due within one year.
9
Parent company
The parent company is K M Holdings Group Limited, whose registered office address is Merlin House Langstone Business Park, Priory Drive, Langstone, Newport NP18 2HJ, due to them owning 100% of the shares and voting rights as at 16 June 2020.