MERCAT FINANCE (AYRSHIRE) LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2019
Company Registration No. SC417747 (Scotland)
PAGES FOR FILING WITH REGISTRAR
MERCAT FINANCE (AYRSHIRE) LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
MERCAT FINANCE (AYRSHIRE) LTD
BALANCE SHEET
AS AT
31 JANUARY 2019
31 January 2019
- 1 -
2019
2018
Notes
£
£
£
£
Current assets
Debtors falling due after more than one year
3
249,598
309,457
Debtors falling due within one year
3
295,820
350,501
Cash at bank and in hand
213,398
202,825
758,816
862,783
Creditors: amounts falling due within one year
4
(398,482)
(544,301)
Net current assets
360,334
318,482
Capital and reserves
Called up share capital
5
100
100
Profit and loss reserves
360,234
318,382
Total equity
360,334
318,482
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 January 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their 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 by the board of directors and authorised for issue on 25 July 2019 and are signed on its behalf by:
Mr James Thomson
Director
Company Registration No. SC417747
MERCAT FINANCE (AYRSHIRE) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2019
- 2 -
1
Accounting policies
Company information
Mercat Finance (Ayrshire) Ltd is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
45 Barrhill Road, Cumnock, Ayrshire, KA18 1PW.
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
Turnover
Turnover represents amounts receivable
from interest & arrangement fees on finance agreements with customers.
1.3
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.
1.4
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.
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.
MERCAT FINANCE (AYRSHIRE) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2019
1
Accounting policies
(Continued)
- 3 -
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
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.5
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.
1.6
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.
1.7
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 1 (2018 - 1).
MERCAT FINANCE (AYRSHIRE) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2019
- 4 -
3
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
284,837
316,348
Other debtors
10,983
34,153
295,820
350,501
Amounts falling due after more than one year:
Trade debtors
249,598
309,457
Total debtors
545,418
659,958
4
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
-
3,076
Other taxation and social security
7,956
10,525
Other creditors
390,526
530,700
398,482
544,301
5
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary shares of £1 each
100
100
100
100
6
Related party transactions
2019
2018
Amounts owed to related parties
£
£
Mercat Finance Partnership
-
24,112
Mercat Finance (Ayrshire) Ltd is a related party of Mercat Finance Partnership by virtue of common control.
MERCAT FINANCE (AYRSHIRE) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2019
6
Related party transactions
(Continued)
- 5 -
Mercat Finance (Ayrshire) Ltd is a related party of JK Thomson & Sons Ltd by virtue of common directorship. During the year Mercat Finance (Ayrshire) Ltd sold returned vehicles from terminated finance agreements to JK Thomson & Sons Ltd at a net loss of £178.
Included within 'Other debtors' at 31 January 2019 is an interest free loan of £7,200 owed by JK Thomson & Sons Ltd. This will be repaid within the current year.
Included within 'Other creditors' at 31 January 2019, are loans owed to the following related parties, on which interest is chargeable at 3% per annum :