Company Registration No. 08734478 (England and Wales)
NEWTURN CNC MACHINING LIMITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2017
PAGES FOR FILING WITH REGISTRAR
NEWTURN CNC MACHINING LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
NEWTURN CNC MACHINING LIMITED
BALANCE SHEET
AS AT
30 JUNE 2017
30 June 2017
- 1 -
2017
2016
Notes
£
£
£
£
Fixed assets
Tangible assets
2
320,740
351,789
Current assets
Stocks
10,000
10,000
Debtors
3
186,959
117,349
Cash at bank and in hand
15,601
18,931
212,560
146,280
Creditors: amounts falling due within one year
4
(1,076,408)
(795,483)
Net current liabilities
(863,848)
(649,203)
Total assets less current liabilities
(543,108)
(297,414)
Creditors: amounts falling due after more than one year
5
-
(92,964)
Net liabilities
(543,108)
(390,378)
Capital and reserves
Called up share capital
6
400
400
Profit and loss reserves
(543,508)
(390,778)
Total equity
(543,108)
(390,378)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
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 by the board of directors and authorised for issue on 22 February 2018 and are signed on its behalf by:
Mr D A Benham
Director
Company Registration No. 08734478
NEWTURN CNC MACHINING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2017
- 2 -
1
Accounting policies
Company information
Newturn CNC Machining Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
33 Liberty Close, Woolsbridge Industrial Estate, Three Legged Cross, Wimborne, Dorset, BH21 6SY.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future because the holding company has agreed not to seek repayment of its loan before other creditors.
1.3
Reporting period
These accounts are for 12 months, but the comparative figures cover a 15 month period and thus profit and loss comparatives need to be viewed in that context. The year end was changed to match that of the holding company.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and 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.
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, 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 machinery
8% straight line
Fixtures, fittings & equipment
18% reducing balance
Motor vehicles
18% reducing balance
NEWTURN CNC MACHINING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2017
1
Accounting policies
(Continued)
- 3 -
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
Stocks
Stocks
are stated at the lower of cost and
estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
1.8
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
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.
The company considers all its financial instruments to be basic.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and 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.
Financial assets classified as receivable within one year are not amortised.
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
Basic financial liabilities, including creditors, 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.
Financial liabilities classified as payable within one year are not amortised.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
NEWTURN CNC MACHINING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2017
1
Accounting policies
(Continued)
- 4 -
1.11
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.12
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.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
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
.
NEWTURN CNC MACHINING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2017
- 5 -
2
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 July 2016
423,083
Additions
3,390
At 30 June 2017
426,473
Depreciation and impairment
At 1 July 2016
71,294
Depreciation charged in the Period
34,439
At 30 June 2017
105,733
Carrying amount
At 30 June 2017
320,740
At 30 June 2016
351,789
3
Debtors
2017
2016
Amounts falling due within one year:
£
£
Trade debtors
106,554
36,594
Other debtors
80,405
80,755
186,959
117,349
4
Creditors: amounts falling due within one year
2017
2016
£
£
Bank loans and overdrafts
53
-
Trade creditors
212,349
143,103
Amounts due to group undertakings
557,756
359,213
Other taxation and social security
49,814
39,730
Other creditors
256,436
253,437
1,076,408
795,483
NEWTURN CNC MACHINING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2017
- 6 -
5
Creditors: amounts falling due after more than one year
2017
2016
£
£
Other creditors
-
92,964
6
Called up share capital
2017
2016
£
£
Ordinary share capital
Issued and fully paid
400 Ordinary shares of £1 each
400
400
400
400
7
Audit report information
As the income statement has been omitted from the filing copy of the financial statements the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Ian Talbot.
The auditor was Wilkins Kennedy LLP.
8
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2017
2016
£
£
213,617
286,857
9
Related party transactions
Transactions with related parties
During the Period the company entered into the following transactions with related parties:
Sale of goods
Purchase of goods
2017
2016
2017
2016
£
£
£
£
Entities with control, joint control or significant influence over the company
948,114
667,994
77,773
46,584
NEWTURN CNC MACHINING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2017
- 7 -
10
Parent company
The ultimate controlling party is Mr D A Benham, by virtue of his shareholding in D A Benham Engineering Limited.
D A Benham Engineering Limited is the smallest and largest group for which consolidated accounts are drawn up and of which this company is a member. The holding company's registered office is Precision House, Rushington, Southampton, SO40 9AH,